The bankruptcy/chapter eleven filings of well-known, respected, and long-established power trading companies have drawn the attention of businesses, institutions, and free market consumers.
Which ones deserve trust regarding respect for existing contracts and even future negotiations?
This "question" has become essential for those seeking peace of mind when contracting electric energy in the free market.
One of the narratives appearing in specialised media to justify this "downfall" of trading companies is also the change in pricing criteria for the PLD (spot price). During the past summer, PLD prices remained very high, while the market had always expected them to be very low, as tradition dictated (rainy season and well-stocked hydroelectric reservoirs).
The consequence was the need to buy electric energy, now at prices much higher than the power trading companies' business models anticipated. Hence the huge losses. New times.
Assessing which trading companies have the robustness to honor contracts has become extremely important to avoid significant "surprises".