- In application of Article 9 of the revised internal electricity market Regulation, the European Commission should carry out an impact assessment to identify potential means among several options to improve the ability of market participants to hedge price risks in the internal electricity market.
- This study focuses on one of those options, regional virtual trading hubs for forward markets and the move from zone-to-zone to zone-to-hub long-term transmission rights (LTTRs) in the CORE region and examined its extension to the Iberian countries and Italy (hereinafter referred to as “South”).
- This impact assessment may result in amending Commission Regulation (EU) 2016/1719, establishing a guideline on forward capacity allocation (FCA Guideline).
- Throughout the EMD process, Energy Traders Europe, Eurelectric and Europex (hereinafter referred to as “the associations”) expressed concerns regarding the risks and difficulties associated with the implementation of virtual hubs and asked for a detailed and robust impact assessment.
- Under this framework, between August and September 2024, the European Commission held a targeted consultation aiming to seek stakeholders’ views on how to improve the current functioning of the electricity forward markets. This consultation, however, did not include the detailed impact assessment.
