1B: Regulating the standardised super-peak hedge contract

Upcoming Open Closed Decision

View submissions Submissions closed 30 September 2025

Consultation

We are seeking feedback on our proposed approach to regulating the standardised super-peak flexibility product, an electricity hedge contract for morning and evening trading periods (the super-peak product).

The super-peak product provides buyers with protection against high prices during periods of peak demand in the morning and evening. It was co-designed by industry experts as an initiative of the Energy Competition Task Force, to improve competition in the market for shaped hedges. The product has traded on a voluntary basis since January 2025, through a fortnightly brokered event on the over-the-counter (OTC) market.

Introduction of the super-peak product, supported by voluntary trading, has improved the availability and pricing of super-peak hedges on the OTC market. While these improvements are encouraging, the market is not yet sufficiently deep or liquid.

If liquidity does not improve to a sufficient level, the Authority intends to consider regulating super-peak product trading to ensure a reliable supply of contracts at efficient prices.

We have considered two options for regulating super-peak product trading on an enduring basis. These options are:

market making on the Australian Securities Exchange (ASX)
market making on the OTC market.

Market making OTC is the Authority’s preferred regulatory option, if required, to improve super-peak hedge contract access and price discovery.

The paper also sets out the Authority’s plan for urgent action if there is a sudden material reduction in the supply of shaped hedges. If urgent action is required, our preferred approach is a temporary obligation on gentailers to offer and sell a minimum volume of hedges OTC to maintain the market while an enduring solution is considered.

We welcome your feedback on these proposals by 5pm, Tuesday 30 September.