Ultimately, an energy exchange can reduce dramatically the price risk related to short-term spikes in load profiles.
Protecting one of the parties from the risk of inflation means that the price risk must be shifted to another party.
For example, if state pensions are adjusted for inflation, the price risk is passed from the pensioners to the taxpayers.
China committed to move toward market-determined interest rates to better price risk and more efficiently allocate capital in its economy.
Similarly, diversification can manage price risk, on the assumption that not all products will suffer low prices at the same time.
It is a vehicle through which suppliers and users hedge price risk so they can concentrate on day-to-day operations.
But to wait until the booking is under way - or finished - before disclosing a full price risks irritating the customer.
A. I think upside price risk is very controllable.
Overregulation of agriculture has increased costs, price risks and uncertainty.
- It is continuing to "monitor very closely" any price risks.
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