The wholesale price of gas has surged from less than 30 euros per megawatt-hour (MWh) just a few weeks ago to over 60 euros per MWh, representing an increase of more than 100%. Consequently, several energy-intensive companies have recently received letters from their gas suppliers warning that the sudden spike in wholesale market prices—stemming from the U.S. and Israeli offensive against Iran—makes it impossible to maintain the previous pricing conditions. The suppliers indicate that if a price update is not accepted, they will be forced to terminate the contracts.
To rescind these agreements, they are invoking the legal clause rebus sic stantibus (“things standing thus”), which is applied in extreme cases where circumstances have changed so drastically and unpredictably that it allows for modifications to the terms of previously signed contracts.
