Brussels calls for supplier strategies mitigating market risk

The European Commission, as part of a series of EU electricity market revisions proposed just days ago, has called on energy regulators to ensure that suppliers implement adequate hedging strategies to mitigate the risk of wholesale market changes by maintaining good liquidity levels and corresponding price signals in short-term markets.

This requirement would be met through a statement from EU electricity suppliers to their respective regulatory authorities setting out measures taken, sector experts have told energypress, noting, however, that it would be a useful yet fairly soft obligation of limited effect.

Apart from its reference to an “adequate compensation strategy” by electricity suppliers, the European Commission’s text does not provide further details on how this could be ensured. Consequently, any monitoring by authorities will not, it appears, be based on measurements and specific indicators.