We’ve released an interactive dashboard on the forward markets tools page that will assist users to better understand hedging with electricity futures contracts.
The hedging dashboard necessarily takes a simplistic approach to constructing a hedge position. That said, it goes into some detail as it demonstrates the daily cost of maintaining the selected position and also reveals the various cost elements, culminating in the calculation of the net cost of the position after final settlement.
The dashboard has been dual hosted and may also be accessed from the Authority’s website, where three contrasting scenarios have been highlighted.
Finally, the dashboard contains a lot of notes, tool tips, and a glossary of terms – there’s a lot going on with this dashboard – so take a few minutes to explore the various aspects.