Questions and Answers About Reregulated Energy Contracting

El pasado 17 de enero, Rafael Herzberg, Partner, Interact Ltd., Energy Consulting le fue publicado el artículo Like It or Not, Deregulated Energy Contracting Is Here to Stay en EnergyPulse.

En esa misma fecha le hice el siguiente comentario con varias preguntas:

Hello Rafael,

I agree that risk allocation is a very important issue. Please explain what are the risk allocations and what results can be expected of two contracts under two extreme cases, say for 2007:

1) A very rainy year (the highest probability ever experienced); and

2) The opposite case (lowest probability)

Please also identify who wins and who losses in those two cases. Just to get a better idea of what you are proposing, I will add a few additional questions:

1. Do you expect the spot price going to zero under case 1 for a large part of the year?

2. If 70% of all industrials, commercial and institutional get over 30% reductions, what price increases do you expect the regulated customers under case 2?

3. Which fuel will substitute water case 2?

4. Which customers might have their load interrupted in case 2?

5. How long is the contract in years?

6. Do you expect intense price spikes developing in case 2?

7. How much demand response capacity is installed?