It seems the silence of the lambs: Despite repeated inquiries, neither Wien Energy boss Michael Strebl, nor his supervisory board Peter Weinelt, nor the politically responsible financial councilor Peter Hanke have revealed how the billion-dollar gap in the electricity trade came about. However, the claim that there was “no speculation” and that there was no threat of loss is no match for a fact check.
In its 2021 balance sheet, Wien Energie already shows “liabilities from derivative financial instruments” for an amount of EUR 3.2 billion, most of which will mature this year. Such deals “are always speculation. Here too, unlimited risk was taken,” explains financial expert Gerald Zmuegg, who scrutinized the utility’s balance sheet. He suspects that Wien Energie has ‘gambled’ that electricity prices will fall.
The opposite happened: at the beginning of the year, the price was 125 euros per megawatt hour (MWh). Apparently a forward contract has been concluded for about 10 GWh, which roughly corresponds to the annual turnover of Wien Energie. With the price sometimes rising to 1000 euros, more and more capital has to be paid in to fulfill the contract.
“Billions Lost” Possible
That explains the billion dollar gap and why Wien Energie had to go to the Minister of Finance. It is unclear how long the contracts will run and under what conditions other derivatives have been concluded this year. Zmuegg: “Ultimately, this could lead to billions in losses.” Others in the industry also have derivatives on their balance sheets. However, it is completely unusual for an energy supplier to enter into futures transactions of this gargantuan size.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
