Electricity suppliers buy certificates in the electricity certificate market to fulfil their market quota obligation. In order to fulfill its quota obligation, the energy supplier must have certificates corresponding to the statutory proportion of their calculation-relevant electricity consumption, in their electricity certificate accounts.
Trading of certificates occurs in the electricity certificate market, where the price is determined by supply and demand. The common market makes it possible to trade in both Swedish and Norwegian electricity certificates. Trading occurs through bilateral agreements between electricity producers and electricity suppliers with market quota obligations, as well as through brokers. Both electricity producers and electricity suppliers with market quota obligations must have an electricity certificate account. Swedish suppliers have electricity certificate accounts in Cesar, while Norwegian suppliers have accounts in NECS. When traded, electricity certificates are transferred from the seller's account to the buyer's account.
Two types of contracts, spot price and forward contracts are used to trade electricity certificates. With forward contracts, transfer and payment occur on a specific future date, while with spot price contracts the certificates are paid for and transferred within five to ten working days.
Marked quota obligation
A market quota obligation is the amount of electricity certificates that the electricity supplier is obliged to buy in the certificates market.
Each year, electricity suppliers with market quota obligations must notify NVE on the number of certificates they require to fulfil their quota obligation, and have the number in their electricity certificate accounts. The electricity suppliers with market quota obligations also approve the quota obligation that is presented in NECS.
Important dates for market quota obligations and cancellations:
15th of February: Grid companies must report to NECS the amount of electricity consumption for every supplier with quota obligation in their grid area.
16th of February: The total amount of electricity consumption for the suppliers with quota obligations for the previous year is available on the supplier's account in NECS.
1st of March: The last day for market participants with quota obligations to approve their quota obligation for the previous calendar year, as well as any corrections for the calendar year before that.
31st of March: The last day for suppliers with quota obligations to have a sufficient number of electricity certificates in their accounts to fulfil their obligations.
1st of April: Cancellation of the number of electricity certificates needed to fulfil the quota obligation. If there are insufficient certificates on the account, NVE or the Swedish Energy Agency will charge a quota fee.