Taking Care of Risky Business: Credit Risk Management in Spot Markets

The collapse of Enron and recent energy industry credit crunch has again brought the issue of energy market credit risk management to the fore. An oft neglected area in these discussions is the management of spot market credit risk. Unlike forward markets, where fairly sophisticated risk management processes are available, the management of credit risk in many spot markets remains rudimentary. Changes to a few key processes, however, could significantly improve the way this risk is managed. read more →

The Application Of OR Techniques In The Certification Of Software Used To Clear Electricity Markets

As increasingly sophisticated electricity markets develop, the software used to clear these markets will become more complex. The output of such market clearing programs has financial implications for market participants. It is very important, therefore, that their programs are tested rigorously before certification. The combination of engineering and economic principles used, and the complexity of the formulations underlying these programs, make this task challenging. read more →