Stress tests

Spot price risk disclosure, also called the stress testing regime, helps electricity market participants understand how exposed they are to sudden increases in wholesale electricity prices, using standard scenarios set by the Electricity Authority.

How the regime works

Every quarter, each disclosing participant must test its position and report the results to the stress test registrar. The registrar provides anonymised information back to the Authority.

Why this matters

The stress testing regime helps organisations manage risk more effectively, which supports a fair and well‑functioning electricity market. It aims to:

• build each disclosing participant's awareness of its exposure to spot price risk
• encourage participants to take proactive and prudent steps to manage that risk
• emphasise that each disclosing participant is responsible for managing the extent of its own exposure.

What the chart shows

The below chart summarises participants' stress test results under two simulated market stress scenarios:

1. Energy shortage events that may lead to periods of sustained high spot prices
2. Unexpected capacity shortfalls that may cause short periods of high spot prices due to sudden increases in demand.

You can find more information about the stress testing regime, including it purpose and answers to common questions, on our stress testing regime information page. You can also download the dataset used below.