The traditional view is that there is a trade-off between security of energy supply and the cost of that energy. Retailers offer security of supply but at a higher cost that includes a risk premium and their retail margin.
We break that nexus by introducing risk management strategies as an integral part of our strategies to save on procurement costs. We help put the risk premium in your pocket rather than pay that premium to the retailer who simply bundles the risk into a fixed price retail contract.
Some of the ways we will typically reduce supply risk include:
- Electricity Demand Side Management to reduce price risk, reduce costs and receive significant incentives
- Sourcing energy from a portfolio of suppliers rather than being reliant on a single retailer
- Eliminating gas supply “take-or-pay” volume risk
- Participation in gas trading hubs to spot purchase short term increases in gas demand or sell excess gas
- Short term gas purchases, sales or swaps with other market participants
- Development of a risk management system and associated documentation to cover cost, volume, supply, legal and regulatory risk