Energy costs are a part of your core business and directly influence your cashflow, profitability and ultimately, the competitivity of your business.
What can we achieve with an active strategy of energy risk management?
- Help to stabilize cash flow.
- Help to protect sales margins.
- Budget control.
- Eliminate seasonal changes on purchasing.
- Get a competitive advantage over the competition.
It is therefore advisable to evaluate the possibility of energy purchasing management in a different way, and we propose the following process:
Through knowledge of each business and their risk profiles, we’re able to better adapt to the existing external risks at all times. In this way we can reduce the risks through the chosen action strategy once the targets defined by the customers themselves have been taken into account.
We constantly follow and monitor the market in order to take prompt action, as defined in the chosen risk management strategy. Subsequent continued control allows us to ensure that the action taken, at all times throughout the cycle, has been successful.
Taking into account the following key issues in risk management, prioritizing the customer’s targets and knowing the requirements the supplier has at all times
Depending on the products available on the market different strategies are used:
The costs and risks of every alternative are compared and evaluated.
A tailor made strategy for each customer is defined, managing risk at all times and taking into account that the market can fluctuate depending on the following parameters:
- Seasonal variation.
- Market trends (bull or bear market)
- Spreads versus others markets and/or commodities.