Why energy suppliers have to deposit billions in loans

Dusseldorf One might think that the record prices for gas and electricity purchases are a burden enough for Germany’s energy suppliers. Municipal utilities and other suppliers have to buy energy at a multiple of what they paid a year ago. However, they often still get low prices from existing contracts from their customers. It is clear that this situation alone can cause payment difficulties for many municipal utilities.

But there’s a second problem that’s now pushing even the most forward-thinking utilities to their limits. It even affects those who have ensured early on with long-term supply contracts that they can supply their customers as promised and that they don’t run out of money anytime soon. The big challenge, which is currently giving many Stadtwerke bosses sleepless nights, is: Margin Call.