Exploding power prices have hit corporate energy buyers hard from last year and are peaking today after companies reduce their deals with Russian suppliers. Energy prices will keep high volatility with ongoing politics of war and threats to stop gas flows into Europe. Besides the risk of rising energy costs, corporates are already exposed to the risk of a shrinking availability of physical electricity supply contracts since a lot of utilities and energy traders have stopped their supply activity due to these extreme price movements.

In addition, producers of renewable energy are also affected in some countries by increasing regulatory pressure like e.g. windfall taxes which reduces the attractiveness to participate from higher market prices.