The term refers to a strategy, where electricity suppliers decide to reduce their own supply in order to increase the price. In a situation where strategic withholding is a profitable strategy to behave, the resulting price for commodity increases. This in its turn allows to collect higher revenues from operating units compensating the loss from the withheld units. This particular strategy creates prices strongly deviating from the economically optimal price level. Nowadays, strategic withholding is even named in the list of causes that can cause an electricity crisis like in California in 2000 and 2001.
A driving force among our customers is not only the issues of digitization and cloud computing, but also IT security. Above all in the energy sector, specific requirements in terms of IT security are becoming increasingly important. Its origin is justified by the IT Security Act, which entered into force on 25th July 2015.
20 years ago the EU decided to create a free energy market in order to make cross-border trading of electricity and gas easier, more transparent and more efficient. This was a mission that required common rules.
On 1 June 2016, the German Federal Cabinet has adopted an amendment of the Incentive Regulation. The amendment should guarantee a more efficient and secure energy infrastructure. But therefore, the system operators are challenging high requirements for transparency and publishing of data.