Energy Unplugged by Aurora cover image

EP.102 Global Project Finance Series in partnership with SMBC Group PART I - Europe

Energy Unplugged by Aurora

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The Dangers of Retroactive Tariffs

A government making such a step to reduce costs maybe in the short run, should really be aware that they're actually increasing costs in the long run because risk premium will be increased. I think another point that goes even a bit beyond that would be with regards not only to retroactively changing tariffs, which is indeed very, very dangerous. But we also see that kind of a discussion even going forward that there is limited trust in these electricity markets where you don't have capacity market. And this will end up to people not building new gas power plants or not building new hydrogen ready power plants for example.

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