The Problem
Fixing energy prices in a volatile market is always a risk.Does it have to be this way?Let's look at how contracts are structured to find out...
Non-Commodity Costs
Much of your unit rate is made up of things aside from the energy itself.These include transportation, distribution and system charges, plus government taxes and levies.They are generally fixed by the network and reviewed every 12 months.
Commodity Costs
The rest is the commodity, the electricity or gas itself.It is globally traded, comes from a variety of sources, and prices are impacted by supply, demand, speculation, weather, geo-politics and more.Because commodity prices constantly change, when we arrange a contract, there's always a risk of getting the timing wrong.
The Solution
Our flexible solution fixes the non-commodity prices that are set by the network, and spreads the commodity purchases across multiple trades.Buying energy in this way and implementing a risk-management strategy means we can take advantage of low price opportunities, avoid market peaks and never put all of our eggs into one basket.
The Results
We end up with a balanced strategy that is flexible, reduces risk, and provides more opportunities to secure value.How competitive you are as a business should stem from your products, processes and efficiencies, not mere luck in timing the energy market.To see if our strategy is right for you, get in touch...
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