In recent years, power markets have experienced significant price volatility, ranging from record-high peaks to negative prices. While such spikes are an inherent feature of marginal pricing, they have nevertheless sparked concerns over windfall profits and the fair allocation of costs between consumers and suppliers. Many countries have implemented various measures to curb high prices, though some argue that these controls have gone beyond what is necessary. Such short-term interventions must be thoughtfully designed, strictly temporary, and structured to avoid creating long-term distortions in investment decisions.
