Article from: OGEL 1 (2006), in Electricity Law and Regulation
A key question to emerge in the light of Enron's demise is how the firm convinced people for so long that it had a formula for creating substantial value with no assets. Few of us felt qualified to question its experts, who seemed able to find value in their complex trading models. Liz Bossley explores the issue.
Although the article was written in the context of power, the principles are the same. Those of you who have followed the ENATRES discussion on the subject of price modelling would find this of particular interest.