Energie AG’s risks and opportunities situation was strongly influenced in the fiscal year 2021/2022 by the tense economic environment for the energy sector and the energy policy. There was a noticeable increase in the volatility of electricity and gas prices on the markets. New all-time highs were continuously reported. These developments were aggravated by both direct and indirect effects due to the Russian-Ukrainian war and the inflationary economic environment. Further to this, the climatic conditions and general climate policy, the potential further impact of the COVID-19 pandemic, and imminent regulatory changes have a significant impact on the risks and opportunities of Energie AG. Also, the details of the impact of the national implementation of the EU Emergency Measures Regulation on the absorption and redistribution of surplus proceeds as stipulated by the EU Commission cannot be predicted at this time.
At the end of February 2022, a separate task force was established at Energie AG in order to continuously monitor and assess the risk of a potential gas shortage, attributable for the most part to the Russian-Ukrainian war. Situation reports are prepared at regular intervals, contractual relationships are analysed, and any risks are noted. Energie AG received its purchased gas volumes on schedule during the reporting period and was able to fill its own storage facilities to over 90% by the end of the 2021/2022 fiscal year.
The typical risks associated with operating activities (fluctuations in electricity prices or the water level) proved to be higher in the course of the fiscal year 2021/2022 than in previous years due to price increases. At the same time, however, the opportunities arising from these issues increased. Energie AG relies on targeted strategic and operational measures to minimise or mitigate these risks and to leverage opportunities in the best possible way.
Within the scope of ordinary activities, there is also the risk of trading partners not being able to meet their financial obligations in good time or defaulting altogether. Counterparty risk management at Energie AG focuses on particularly careful monitoring of counterparty limits/exposures and the implementation of risk mitigation measures.
The reliability of medium- to long-term forecasts is currently limited due to volatile energy markets and uncertainties in energy policy. In the Energie AG Group, however, no risks were identified in the fiscal year 2021/2022 that, either individually or collectively, would have the potential to jeopardize the continued existence of the Company.
For more details on the risks and opportunities situation, see the Notes to the Consolidated Financial Statements, Section 35. Risk management.