Energy suppliers buy electricity certificates on the electricity certificate market. In order to fulfill the 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 in the electricity certificates occurs on 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 energy producers and energy participants with market quota obligations, as well as via brokers. Both energy producers and energy suppliers with 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 to the buyer's account.
Electricity certificates are mainly traded via two types of contract: spot price contracts and forward contracts. 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 and ten working days, respectively.
Each year, energy suppliers with quota obligations must notify NVE of the number of certificates they require to fulfil their quota obligation and have the number in their electricity certificate accounts. The energy suppliers with quota obligations approve the quota obligation that is presented in NECS.
Important dates for quota obligation and cancellation:
15 February: The grid companies must report to NECS the calculation-relevant electricity consumption for every supplier with quota obligation in their grid area.
16 February: The total calculation-relevant electricity consumption for the suppliers with quota obligations for the previous year is available on the supplier's account in NECS.
1 March: The last day for market paricipants with quota obligations to approve their quota obligation for the previous calendar year, as well as any corrections for the calendar year before that.
31 March is the last day for suppliers with quota obligations to have a sufficient number of electricity certificates in their accounts to fulfil their obligations.
1 April: Cancellation of the number of electricity certificates needed to fulfil the quota obligation. If there are insufficient certificates in the account, NVE or the Swedish Energy Agency will charge a quota fee.