During a recent television debate between the Energy Minister and his shadow, one couldn’t possibly miss their lack of appreciation of the implications of hedging contracts. Just imagine the viewers’! Both talked casually about Enemalta’s recent ‘losses’, but of course giving their own different political versions.

Nobody should associate profits/losses with hedging, since this is only a way of seeking protection against a potential financial loss or other adverse circumstances, especially by making balancing or compensating transactions through such derivatives as the futures and forward markets.

In no way can hedging be associated with gambling. What could have been a worthwhile, interesting issue was whether Enemalta did in fact operate in the futures or the forward market. Certainly not why it hedged at all.

Sign up to our free newsletters

Get the best updates straight to your inbox:
Please select at least one mailing list.

You can unsubscribe at any time by clicking the link in the footer of our emails. We use Mailchimp as our marketing platform. By subscribing, you acknowledge that your information will be transferred to Mailchimp for processing.