Fingrid has submitted a proposal to the Energy Authority regarding hedging opportunities between Finland and Sweden
On 29 May 2026, Fingrid submitted to the Energy Authority its proposal to improve hedging opportunities between Finland and Sweden. Fingrid proposes the introduction of a market-making arrangement. The objective of this arrangement is to increase trading opportunities in the Finnish electricity derivatives market by supporting the market-making activities of participants on organized marketplaces.
The decision issued by the Energy Authority on 1 December 2025 obligated Fingrid to prepare a proposal for measures to improve electricity price hedging opportunities in the Finnish bidding zone. In response to this obligation, Fingrid has prepared a proposal based on supporting market-making activities.
Under the proposed market-making arrangement, Fingrid would support market-making conducted on organized marketplaces with up to EUR 1.2 million annually. The support would be financed through congestion income. Market participants joining the market-making arrangement would be required to enter into agreements both with Fingrid and with a derivatives exchange selected by the participant. In order to receive the support, the participant would need to submit buy and sell orders at minimum daily volumes to the derivatives exchange.
The performance of participating market players would be assessed based on the spread between buy and sell offers and the realized trading volumes, and the compensation payable would be determined on the basis of this performance assessment.
Fingrid submitted the proposal on the market-making arrangement to the Energy Authority for approval on 29 May 2026. Following approval, Fingrid will have six months to implement the proposed measures. The detailed parameters of the arrangement will be specified during implementation, and the arrangement would enter into force at the earliest in the latter part of 2027. The arrangement is temporary and may be discontinued if the set objectives are not achieved.