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EXPLAINER-How margin calls came to threaten Europe's energy firms

Signs of market strain started appearing quickly in 2022 with an unprecedented jump in European gas and power prices due to a confluence of factors, including high post-pandemic energy demand, cuts to Russian gas supply in the wake of the war in Ukraine and unusually low nuclear and hydropower generation. To manage risk, several producers sell some of their power up to three years in advance on exchanges, but this also requires making security deposits to guarantee future deliveries in case of ...
United Kingdom Gazprom Germania European Commission Danske Commodities European Securities Markets Authority

EXPLAINER-How margin calls came to threaten Europe's energy firms

Signs of market strain started appearing quickly in 2022 with an unprecedented jump in European gas and power prices due to a confluence of factors, including high post-pandemic energy demand, cuts to Russian gas supply in the wake of the war in Ukraine and unusually low nuclear and hydropower generation. To manage risk, several producers sell some of their power up to three years in advance on exchanges, but this also requires making security deposits to guarantee future deliveries in case of ...
United Kingdom Gazprom Germania European Commission Danske Commodities European Securities Markets Authority

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