Cover story
Switching off to save cash
High electricity price volatility over the European summer has raised awareness of interruptible power contracts, finds James Ockenden
Emerging adequacy
The Committee of Chief Risk Officers’ capital adequacy ‘emerging practice’ guidelines will, says the capital adequacy committee chair, evolve into a new regulatory body within a year. James Ockenden reports
Energy firms turn to overlay
Energy companies face a tough future over pension provisions – a problem that could well exacerbate credit deterioration. Paul Lyon finds that innovative use of currency overlay could provide some form of refuge
A formula for high prices
The US chemical industry is crying foul over spiralling natural gas prices, but there are measures they can take to protect themselves, as Kevin Foster discovers
Pointing the index finger
Concerns over manipulative energy price reporting has led to a call for price index reform. But many market participants are apprehensive about disclosing detailed confidential data to a third party. James Ockenden looks at developments
US retreat hits European trading
The retreat of US energy firms from energy trading has reportedly hit European volumes hard. But volumes aside, James Ockenden finds that the withdrawal may bring a fundamental change in the market. With additional reporting by Eurof Thomas
Rising fuel costs, diving profits
Airlines differ on how to manage jet fuel price ‘hyper-volatility’ as option prices point to more turbulence ahead. Catherine Lacoursière reports
Weighing up the options
The Brazilian energy market is set for more upheaval as the incoming president seeks a compromise between his campaign promises of greater state control over energy and the goal of attracting foreign investors into the sector. Maria Kielmas reports
Getting protected
Insurance premiums may have rocketed for power companies over the past year but new ‘dual-trigger’ insurance products could still be an efficient way of transferring price risk. James Ockenden reports
Out of the zone: nodal pricing takes hold
Congestion-constrained US electricity markets are likely to find relief with the arrival of a new pricing regime, reports Catherine Lacoursière
Balancing the books
Regulators are taking advantage of a lull in power project development in the US to close loopholes in financing rules, reports Catherine Lacoursière
Online trading moves forward
Online energy trading seems to have a bright future, despite the two biggest players – Dynegy Direct and EnronOnline – leaving the market, finds Catherine Lacoursière
Artificial intelligence advances
Artificial intelligence is widely seen as more science fiction than science, a grab bag of 1960s theories that never panned out. But while computers still can’t grasp the difference between concepts such as ‘breadbox’ and ‘Chicago’, artificial…
A new cop on the beat?
The Federal Energy Regulatory Commission has been severely criticised for its actions – or lack of them – during California’s disastrous attempt at deregulation. It is now hitting back at the energy industry. Kevin Foster reports
Volatility dealers’ conundrum
Margins on dollar-denominated swaptions and constant maturity swaps have narrowed sharply. This is great for clients, but dealers are caught in a bind. Gallagher Polyn asks why
Rating agencies raise the bar
Confidence in energy traders has never been lower, and the metrics the rating agencies apply to their business are changing. James Ockenden assesses the damage
The evolving art of pricing cliquets
Cliquet options are widely traded and embedded in many retail structured products. But they are hard to value and some dealers claim their rivals are mis-pricing them. Navroz Patel reports on the debate and some initiatives that may help
Worth waiting for?
Just over a year on from the delayed launch of the UK’s new electricity trading arrangements, prices have dropped to new lows. But just how low can generators go, asks Joel Hanley
Europe’s patchwork path to liberalisation
In the three years since the European Union’s Electricity Directive came into effect much has changed in Europe’s energy industry, but the industry is still far from achieving the goal of a pan-European energy market, as Matt Horsbrugh discovers
A smooth handover?
A change in the way weekly natural gas storage figures are reported is proceeding fairly smoothly – but it may still cause price swings, as Kevin Foster discovers
Storing up the gains?
Natural gas prices are climbing again, and energy companies are reacting by putting in place new hedges, as Kevin Foster discovers
Navigating a troubled road
Don Stowers finds the online energy trading market place as competitive as ever, with several new platforms ready to enter the fray
Not just a quick fix
Real options are an accepted risk management technique in the energy sector. Kevin Foster takes a look at how are they being used and what factors are affecting their development and implementation