Electricity market: public consultations concerning the possibility to protect from a risk in cross-zonal transmission across the borders of the Polish market area are held until June 27
Is there a need to protect from a risk in the cross-zonal transmission between the Polish market area and the Swedish and Lithuanian market areas? Are there any products in the Polish market area, in derivatives markets, that form a protection against price variability on the day-ahead market? We are waiting for answers for the above and other questions until June 27.
The Energy Regulatory Office (URE), working hand in hand with European Union Agency for the Cooperation of Energy Regulators (ACER), at least once per four years evaluates[1] whether the electricity derivatives market ensures sufficient capacities for protection with regard to the market areas in Sweden and Lithuania.
The relevant regulators of a border of a market area perform such evaluation in a coordinated manner[2], and the evaluation covers at least:
- consultations with market participants on their needs in terms of the capacity to protect against the risk in cross-zonal transmission across specific market area borders;
- analysis.
The first coordinated decisions on the non-issuance of long-term transmission rights on the Polish and Lithuanian[3] border and on the Polish and Swedish[4] border were issued by the President of the URE on 17 May 2017, upon consultations with affected entities. In 2021, the Regulator performed a re-evaluation with the result that the condition specified in 2017 remained unchanged[5].
Before the decision is re-issued, without limitation concerning the long-term transmission rights on the borders of the Polish area with Lithuania and Sweden, the President of the URE is obliged to hold similar consultations regarding the needs of market participants in terms of the capacity to protect against the risk in cross-zonal transmission. Therefore, the entities interested in making a statement are asked to send answers to the following consultation questions to ltr@ure.gov.pl until 27 June 2025:
- Is there a need to protect from a risk in the cross-zonal transmission between the Polish market area and the Swedish and Lithuanian market areas?
- Are there sufficient capacities for protection against the risk in the Polish market area, in the electricity derivatives market? Please justify your answer.
- Are there any products or product combinations in the Polish market area, in derivatives markets, that form a protection against price variability on the day-ahead market?
If the answer to question No. 3 is positive:
- Do the products or product combinations properly safeguard against the price variability in the day-ahead market? Please justify your answer.
- Are the existing products or product combinations effective in terms of:
I. trading time horizon;
II. bid-ask spread;
III. ratio of volumes subject to trade to the physical electricity consumption;
IV. ratio of open items to the physical electricity consumption.
Please justify your answer.
***
Notice of the President of the URE No. 25/2025 of 23 May 2025.
[1] Pursuant to Article 30(8) of Commission Regulation (EU) 2016/1719 of 26 September 2016 establishing a guideline on forward capacity allocation (OJ EU L 259 of 27.09.2016, p. 42, as amended).
[2] URE coordinates its work with the Swedish and Lithuanian regulators.
[3] Decision of the President of the URE of 17 May 2017, ref. No. DRR.WRE.7128.13.2017.JPa2
[4] Decision of the President of the URE of 17 May 2017, ref. No. DRR.WRE.7128.14.2017.JPa2
[5] Notice of the President of the URE No. 65/2021