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Energy Procurement Cost Optimisation

The UK energy market is the most open and competitive market in Europe enabling energy buyers to source both fixed price and flexible price products over 2, 3 or 5-year contract periods.

 

Energy commodity prices will always be volatile due to many influencing factors such as weather and politics. So buying competitively requires a deep understanding of price volatility and associated signals if one is to profit from changing prices. 

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The choice between fixed v flexible price contracts boils down to the buyer’s attitude to risk. Both types of contract carry inherent risk for example, buying a fixed price fixed term contract may give you peace of mind but the chances of getting it right are no better than 50:50.

In volatile markets, flexible price contracts backed up by a risk management strategy (rms) can deliver savings of 15% to 20% compared with fixed price contracts. 

 

Working closely with our partners, we combine our technical and buying expertise to:

  1. evaluate client benefits of fixed versus flexible purchasing options

  2. customise rms for futures trading using products such as CaR (Capital at Risk)

  3. bill check, budget and forecast expenditure 

  4. identity additional savings by changing to cheaper tariffs, reducing capacity and power factor charges.

 

For more information contact us.

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