Power companies use market to hedge geopolitical risks, avoid repeat of Ukraine crisis Power providers are using the futures market to lock in prices as a hedge against price fluctuations.
Power companies use market to hedge geopolitical risks, avoid repeat of Ukraine crisis Power providers are using the futures market to lock in prices as a hedge against price fluctuations. (Photo by Tetsuya Kitayama) TOKYO -- Electricity futures prices in Japan and Europe have soared since the effective closure of the Strait of Hormuz, a key energy chokepoint, drove up prices for liquefied natural gas and other fuels, pushing power companies to do more to hedge risks.