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Avoiding over-exposure

Eurof Thomas finds the European energy market is increasing its focus on credit risk mitigation in the wake of Enron’s demise

While it has reduced the cost of gas and electricity for the consumer, European energy market liberalisation has brought increased credit risk for energy and power producers and traders.
And it is not difficult to see why. It is little more than three years since only a handful of companies traded electricity in Europe. They knew each other well and, as state monopolies, they faced no danger of

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