Tenders Are Invited For Portfolio Management Services

Contract Notice Portfolio Management ServicesElectricity Derivative Portfolio ManagementDescription 1 Fingrids Hedging Strategy Goals And Principles Due To Its Role As A Tso Fingrid Has Selected A Conservative Strategy The Goal For Price Hedging Is To Manage Cost Risks And Ensure Predictable And Stable And Reasonable Costs Fingrids Overall Risk Policy And Main Grid Tariff Policy Which Favours Tariff Stability Form The Basis For The Hedging Strategy In Practice Price Hedging Is Carried Out According To These Main Principles Hedging Horizon Is Approximately The Next 3 Years Loss Power Procurement Shall Be 100 Price Hedged In Advance Price Hedging Is Carried Out Against System Price And Area Price Only Euro Contracts Are Used The Power Exchanges System Price And Area Price Futures Are Used Corresponding Otc Products May Also Be Used An External Portfolio Manager Carries Out Price Hedging According To Rules Set Up By Fingrid The Portfolio Manager Decides Independently The Exact Timing Of Hedging Contracts Within The Agreed Time Span Fingrid Does Not In Any Way Take Part In These Decisions Fingrid Supplies The Portfolio Manager With A Monthly Loss Forecast For The Entire Hedging Horizon Fingrid Reserves The Right To Add Or Change The Principles Listed Above This List Is Not Comprehensive 2 Portfolio Managers Tasks At Minimum The Portfolio Manager Shall Based On Fingrids Hedging Strategy Maintain A Detailed Hedging Plan Including Monthly Amounts And Products To Be Hedged Independently Carry Out The Price Hedging Of The Loss Power Procurement Based On The Guidelines And Hedging Strategy Provided By Fingrid Carry Out The Price Hedging At The Best Available Price Utilising Both The Electricity Exchange And The Otc Market And Report Concluded Transactions To Fingrid By Email As Soon As Possible However Not Later Than 12 00 Finnish Time The Day After The Trading Day Clear All Otc Contracts At The Clearing House Deliver Price Forecasts On A Monthly Basis For The Next 5 Years Deliver Price Forecast For The Next 10 Years Upon Request Deliver A Report Of The Margin And Collateral Evaluation Margin Requirement Details Variation Margin Details And Cash Settlement Propagation From The Nasdaq Omx On Business Days Deliver Once A Month A Report Of Previous MonthS Daily Collateral Requirements Act As Fingrids Representative Towards The Power Exchange And The Clearing House Arrange Electricity Market Reviews To The Fingrids Personnel 1 2 Times A Year At The Fingrids Offices Report Monthly To Fingrid In The Agreed Format Matters Related To Price Hedging Actions And Status Of Fingrids Portfolio Be In Monthly Telephone Contact With Fingrid More Frequently If Needed Not Take Part In The Procurement Of Physical Power In Option Contracts Reporting In Accordance With The Emir Regulation 3 Fingrids Tasks Fingrid Shall Be Responsible For Delivering The Loss Forecast To The Portfolio Manager Define The Hedging Strategy Be Responsible For The Adequacy And Monitoring Of The Guarantees Required By The Clearing House Time Limit For Receipt Of Tenders Or Requests To Participate Date 03 02 2019 Local Time 23 59

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