Electricity Futures Not Subject to Carbon Cost Add-on
Wed 29 Apr 2009
For clarification reasons, please be advised that all dcypha SFE Electricity Futures and Options products are free of carbon cost price adjustments.
E.g. if a retailer buys a futures contract for $50.00/MWh as a hedge and holds that position to expiry, the retailer’s effective hedge rate remains at $50/MWh (after transaction costs), regardless of whether or when a federal emission trading scheme is implemented. The retailer's electricity hedge rate does not incur a carbon cost add-on.
Such cost savings and increased certainty provided by carbon-clean (i.e no carbon cost add-on) futures hedging for retailers may also assist in providing more competitively priced electricity supply to consumers.
For further enquiries please call the d-cyphaTrade Team on 1800 3301 101 or if someone in your organisation would like to learn more about the dcypha SFE Futures and Options Market, please go to Training.