{"status":"ok","message-type":"work","message-version":"1.0.0","message":{"indexed":{"date-parts":[[2026,10,16]],"date-time":"2026-10-16T15:45:04Z","timestamp":1792165504536,"version":"4.4.0"},"posted":{"date-parts":[[2026]]},"group-title":"SSRN","reference-count":38,"publisher":"Elsevier BV","license":[{"start":{"date-parts":[[2026,1,1]],"date-time":"2026-01-01T00:00:00Z","timestamp":1767225600000},"content-version":"unspecified","delay-in-days":0,"URL":"https:\/\/www.uspto.gov\/ip-policy\/copyright-policy\/copyright-basics"}],"content-domain":{"domain":[],"crossmark-restriction":false},"short-container-title":[],"abstract":"<jats:p>European electricity-market reform requires suppliers to maintain appropriate hedging strategies. Assessing that adequacy, however, first requires identifying the exposure being hedged, which may differ from both expected physical load and exposure to a single wholesale-price benchmark. This paper examines how settlement rules and retail contract design determine the economic exposure retained by electricity suppliers, and how market constraints affect the extent to which that exposure can be hedged. The empirical analysis uses publicly available settlement data for the Spanish peninsular electricity market from January 2025 to August 2026. The settlement data are combined with a regulatory and contractual mapping and a controlled comparison of retail contract structures. Available risk-management instruments are then assessed against the identified exposures. The procurement-cost component not captured by the day-ahead price averaged 19.37 \u20ac\/MWh, representing 23.5% of the analysed benchmark, and displayed substantial heterogeneity across settlement components. Holding the hourly procurement-cost process constant, alternative contractual pass-through rules generated materially different retained-exposure profiles. Some retained exposures cannot be directly replicated with the standardised instruments reviewed. The limitations differ by risk factor and include load-shape and volume mismatches, trading activity concentrated at shorter tenors, and the absence of a directly matching financial underlying for some settlement components. These findings imply that identical nominal hedge ratios need not provide equivalent economic protection. Hedging adequacy should therefore be assessed in relation to the exposure retained under the contract and the portion that can realistically be transferred under prevailing market and financing constraints.<\/jats:p>","DOI":"10.2139\/ssrn.7620242","type":"posted-content","created":{"date-parts":[[2026,10,16]],"date-time":"2026-10-16T14:49:34Z","timestamp":1792162174000},"source":"Crossref","is-referenced-by-count":0,"title":["Measuring Retained Market Exposure in Electricity Retailing: A Contractual and Financial Hedging Framework"],"prefix":"10.2139","author":[{"ORCID":"https:\/\/orcid.org\/0009-0001-0439-1833","authenticated-orcid":true,"given":"Aitor","family":"Folch Charles","sequence":"first","affiliation":[],"role":[{"vocabulary":"crossref","role":"author"}]}],"member":"78","reference":[{"key":"ref1","article-title":"Directive (EU) 2024\/1711 of 13 June 2024 amending Directives (EU) 2018\/2001 and (EU) 2019\/944 as regards improving the Union's electricity market design","year":"2024","journal-title":"L 2024\/1711"},{"key":"ref2","article-title":"Commission Recommendation (EU) 2026\/1009 of 30 April 2026 on supplier risk management","year":"1009","journal-title":"Official Journal of the European Union"},{"key":"ref3","year":"2024","journal-title":"Use of Prudential Regulation Mechanisms to Promote Effective Supplier Risk Management in the Energy Sector, Customers and Retail Markets Working Group, Ref. 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