EU Rules May Soak Up $93 Billion of Utility Cash: Energy Markets
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Companies from RWE AG to Vattenfall AB may have to find an extra 69 billion euros ($93 billion) to meet unprecedented European Union regulations designed to crack down on speculation in the region’s energy markets.
A proposal made last month by the EU may for the first time require utilities and other firms with commodity assets to set aside funds to clear, or safeguard, their power, fuel and carbon-permit trades against default. Those companies don’t currently need to clear so-called over-the-counter, or OTC, trades which, in power, account for 73 percent of Europe’s electricity market.