Hedging new electricity market risks in the concentratedmarket-places in the European Union

摘要

There is an on-going liberalization and deregulation process inthe electricity markets worldwide. This process has created new actorsand new risks in the market. The risks mainly consist of the price risk,counterparty risk and the system risk. In this study, the authors havecompared the hedging methods offered by two electricity pools in theEuropean Union, the Nordic Electricity Exchange Nord Pool and theElectricity Pool of the United Kingdom. Hedging methods available at themoment are the financial instruments (futures, forwards and options),special hedge contracts, clearing house services and security payments.The principle of hedging is similar in both the studied electricitypools, but methods do vary. This is mainly due to the fact that thesepools are of a different nature