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Free power market: billionaire conflict to be avoided!

image credit: Balance is the key!
Rafael Herzberg's picture
Consultant energy affairs Self employed

Rafael Herzberg- is an independent energy consultant, self-employed (since 2018) based in São Paulo, Brazil* Focus on C level, VPs and upper managers associated to energy related info, analysis...

  • Member since 2003
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  • Mar 28, 2020

Free power market: billionaire conflict to be avoided!

The pandemic brought a harsh reality: companies and institutions, started to operate with less intensity. Result: surplus energy - I mean the difference between contracted and consumed volumes.

The established contractual, official way of dealing with this surplus is for the customer to sell it. Simple and easy! But...., the price of this settlement will be a small fraction of the contracted price.

This will then generate a significant loss for companies and institutions, deregulated energy users. Considering the expectations foreseen by the market until the pandemic is resolved and productive activity returns to normal, there will have been USD Billions in financial losses.

Would the pandemic be a force majeure to justify a lawsuit demanding that power traders only bill what is actually consumed?

I propose for consideration by sellers and buyers that an immediate mediation be created to seek a negotiated solution and, above all, that it becomes effective quickly.

As an independent consultant and experienced in energy contract arbitration, I am available to mediate this conflict.

Rafael Herzberg's picture
Thank Rafael for the Post!
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