gas procurement

Gas and electricity procurement: Strategic choices for Serbian exporters

Serbian exporters increasingly face a strategic choice: treat gas and electricity as separate procurement streams or integrate them into a unified energy risk strategy. The latter approach is rapidly becoming essential. Gas procurement indexed fully to TTF offers flexibility but exposes companies to extreme volatility. Electricity procurement based on short-term wholesale markets compounds this risk because gas often sets the marginal power price. The result is correlated shocks that magnify overall cost volatility. More resilient exporters combine medium-term gas contracts…