Super-peak hedge contract to trade in January

The Energy Competition Task Force announced a new standardised flexibility product to improve competition in the wholesale electricity market on Wednesday this week.

A super-peak contract, developed and recommended by the Standardised Flexibility Product Co-design Group, will provide buyers with protection against high prices in morning and evening peaks, covering:

• All days
• Morning peak trading periods: 15 to 21 (7:00am to 10:30am)
• Evening peak trading periods: 35 to 42 (5:00pm to 9:00pm)
• Buyers can purchase cover for calendar months or calendar quarters, up to 3 years ahead.

The product specification sheet is available. A recording of the webinar: Introduction to to flexibility products for the wholesale electricity market in 2025 is available here.

Trading will commence over the counter in January 2024.

The Co-design Group prepared a request for information to send to brokers to undertake regular trading events from late January.

Anonymised order and trade information will be disclosed to all parties.

The introduction of standardised flexibility products is one of four initiatives being considered by the Energy Competition Task Force under Package One to enable new generators and independent retailers to enter and better compete in the market.

Other initiatives being investigated by the Task Force may provide targeted support for renewables development.

The Authority is considering the Co-design Group’s full recommendations and will respond in due course.