How did Wien Energie and, as a result, the city of Vienna, get so cold? Many experts ask themselves this question. A stress test might have helped.
Wien Energie is Austria’s largest energy supplier. The security mechanisms should also be accordingly strict. In this case, the head of the supervisory board, Peter Weinelt, refers to the “risk manual”, which is binding on Wien Energie and essentially specifies the company’s full operating radius. This is reviewed annually and adjusted to current market conditions. It is not public, as market strategies can of course also be derived from it.
Experts too “blue-eyed”?
A standard measure for assessing risk situations is the so-called stress test. The effects of extreme market events on the own company are investigated. These are conducted at regular intervals for companies operating in particularly volatile markets. These have also been known to the general public since the banking crisis.
Have you weighed yourself in false safety?
And this is where Wien Energie could have been too “naive”, as some experts suspect. An industry insider: “The parameters may be too conservative. But then the stress test simply misses its target. If one had assumed a higher electricity price for one megawatt hour, the situation might have been better assessed.”
At Wien Energie they don’t want to accept that. “Liquidity risk is evaluated and monitored several times a day, as well as continuous process monitoring and reconciliations. In addition, risk management audits are regularly performed by external auditors. The current developments could not have been foreseen,” said a spokesperson.
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.
