European energy companies are requesting at least 1.5 trillion euros in government liquidity to cover their margin calls following Russia’s cut-off of gas supplies to Europe which caused costs to soar, according to Norway’s utility firm Equinor.
Firms in Britain were not included in the Norwegian power company’s estimates.
Several EU nations are already providing billions of euros to assist utilities stuck with extra collateral payments on their margin calls in the biggest energy crisis in decades.
Energy firms habitually sell power in advance to secure a certain price, but must maintain a “minimum margin” deposit in case of default before they supply the power….