New regulations are potential game changers for how power and utility companies manage their energy trading. PwC recently launched “Treading a new trading path: The new regulatory reality facing commodity trading and risk management in the power and utilities sector” to see how companies are responding to the changes in energy trading and to look ahead at the market implications.
The report resulted from a roundtable during which PwC experts and company leaders from across the globe discussed issues they are dealing with. Inadequate regulation of the over-the-counter derivatives market, Dodd-Frank and the European Market Infrastructure were identified as factors in the credit crisis that had significant implications for power and utility companies. The focus of the roundtable was largely on the U.S. and Europe but also touched on developments in the Far East, an important area for global commodity and energy traders.
Highlights and topics discussed include:
· Preparing for the future in the U.S.
· How the rule changes are adding to wider market challenges
· Data gathering and reporting challenges
· In what direction are these changes headed — what will be the impact?