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Europe’s Lehman Warning on Energy Prompts Flurry of Cash Aid

  • Price jumps are increasing margin calls on power providers
  • Multiple governments are offering credit lines, loans to help
Finnish utility Fortum got 2.35 billion euros ($2.3 billion) of bridge funding to ensure adequate liquidity.

Finnish utility Fortum got 2.35 billion euros ($2.3 billion) of bridge funding to ensure adequate liquidity.

Photographer: Ville Mannikko/Bloomberg
Updated on

European governments are patching together emergency measures to support utilities amid fears that companies will buckle under the weight of growing margin calls, worsening an energy crisis that’s sent prices soaring and left the continent short of gas.

Recent days have seen a flurry of news -- from Sweden to Switzerland to the UK -- as companies and governments try to get to grips with the situation. Norway’s Equinor ASA has said that European energy trading risks collapsing under the weight of margin calls amounting to at least $1.5 trillion.