Nordic authorities moved this weekend to bolster the liquidity of utilities struggling with collateral requirements, saying there was a risk of a “Lehman” moment.
- To limit the impact of gas prices on power prices:
- temporarily capping the price of gas used for electricity generation
- putting a price ceiling on gas imported from Russia
- temporary exclusion of power production from gas from merit order and price setting on the electricity market could also be an option
- To increase liquidity on the market:
- an urgent Europe-wide credit line support for market participants faced with very high margin calls
- capping the limits for margining or automatic price ceiling adjustment
- temporary suspensions of European power derivatives markets.
How does removing gas from producing power going to lower electricity bills? Will the gov forks the bill for capping the price of gas used in power production? Then there is a freeze on the derivatives market, which include commodities. Totally not signs of distress.


