First Calendar 2012 trade, 25/03/2009
Thu 26 Mar 2009
The d-cypha SFE electricity futures market traded the first calendar 2012 contract on 25th March 2009. Victoria Calendar Year Baseload electricity traded 5 MW at $69.00.
The SFE will launch 2013 (Quarter 1 and Quarter 2) Peak and Base load futures contracts on the 1st of April 2009. Baseload $300-strike cap futures will also be launched across the 2011 calendar year.
Highlights:
- Increased transparency
- Long-term price discovery
- No carbon pass-through clauses
The transparency benefits of long-term price discovery in electricity futures contracts continue to be provided to market participants such as energy retailers, large industrial electricity consumers and power generators. Such price discovery is critical to accurate benchmarking for customer supply contracts, investment decision making (for both generation and retail competition) and AASB139 hedge accounting valuation requirements for longer term over-the-counter and exchange-traded hedge contracts.
Exchange traded electricity contracts are not subject to retrospective carbon pass-through adjustments like some over-the-counter hedge contracts. Liable entities under the proposed CPRS (including energy companies and large industrial electricity consumers) can therefore lock in a known electricity price hedge out to 4 years ahead using futures and exchange traded options, while reducing commercial uncertainty associated with the proposed emission trading scheme.