METHODOLOGY FOR BUILDING POWER PORFOLIO OF COMBINED PHYSICAL FORWARD CONTRACTS HEDGING MARKET RISK OF LARGE CUSTOMERS

Energy sector liberalization led in accordance with European Union law including Directive 2003/54/WE of the European Parliament and of the Council concerning common rules for the internal market in electricity has given to customers legal means, in the form of TPA rule, to create their own strategies of meeting energy demand. The Customers should not restrict themselves only to the trading companies' offers but an analyses of active functioning on energy market should be also taken under consideration. One of the most significant decisions the firms have to make is to establish what part of the demand should be hedged with term contracts and which will be traded in SPOT market. Hence, the method of building power portfolio of combined term contracts hedging market risk has been presented. The paper also contains a case study based on the large energy customer.