Risk hedging instrument indicates the price difference of Estonian and Latvian electricity to be 2.53 euros in 2017

At the auction held on Wednesday, the price of the risk hedging instruments, i.e. the limited PTRs for the differences in the exchange price of Estonian and Latvian electricity was fixed at 2.53 euros per MWh for the year 2017.

“The decrease in the price of limited PTRs compared to last year’s auction indicates that the new electrical connections from Lithuania to Poland and Sweden have reduced the risk of a price difference between Estonia and Latvia,” says Taavi Veskimägi, Chairman of the Board of Elering.

At the auction for limited PTRs in the following year, market participants purchased all of the PTRs for sale in the volume of 300 megawatts per every 8,760 hours of next year. Ten market participants partook in the auction and nine of them acquired hedging instruments as result of the auction.

The financial volume of the sold instruments amounted to 6.6 million euros. Whether acquiring the instruments will meet the objective in favour of the market participants will be determined at the end of next year.