The article analyzes how forward contracting in electricity markets can affect prices and profits for market players. It shows that when producers use forward sales to lower spot prices, they can adjust their strategies in the forward market to offset the decrease. This results in profits similar to those without forward trading. The study also considers the impact of private information on spot prices, revealing that past spot prices can predict future prices. As a result, there is little need for regulatory measures based on forward contracting to address market power.