A participant here further faces uncertainty concerning demand, where large deviations from the forecasted volume may be caused, for example, by unseasonal weather impacting gas consumption.
Other concerns include[4] plant availability, collective customer outrage, and regulatory interventions.
[6] Risk management entails[2] formally modeling demand and responding dynamically (if not preemptively) to the market.
[7] For PPPs, a tax-supported minimum revenue guarantee (MRG), may be provided by the (local) government.
[10] At the same time, producers and their customers regularly hedge against price risk using[12] available commodity derivatives.