Originally Posted by
JAYAY
Apparently some hedging was a requirement to guarantee certainty in order to secure the finance to purchase the transmission assets.
I have always regarded hedging the same as gambling, the House (Hedge Fund) always wins.
In the case of the electricity market the Hedge Fund couldn't lose given the certainty of power price increases, especially given the Government's mad rush to shut down oil and gas and promote renewables.
Question is, how often do we get to renegotiate the hedging terms?