Commercial Optimisation & Risk Management

If you generate, supply or consume energy you have a financial exposure to one of the most volatile commodities in the world.  The question we answer is whether the exposure you have is the one you want – and if it isn’t, what you can do about it.

It’s a simple concept, but one that involves really understanding how big your exposure is from a price and volume perspective as well as what your risk appetite is.  Too often companies are promised the upside from trading without being told what could happen if it goes wrong.  We look at upside and downside risks, allowing you to determine the best approach based on analysis. 

We work with suppliers, generators and large consumers to assess their starting point, and to determine what a good outcome is.  

The benefit to a client is a simple; a board ready approach to the market, including the mechanics and controls to deliver the objective you set.  We have worked with clients in both developing and implementing their trading strategies – ranging from those that just want to fix prices through to those that are willing to hold positions and seek risk.

Our approach begins and ends with our clients.  Through understanding their portfolios, what they want to achieve, and what the external market will provide we take the process from analysis through design and into implementation and ongoing support if needed.

We don’t live in the ivory tower of pure consultancy, or the transactional sales route of energy sales; but provide your business with as much support as it needs for as long as it needs.  Some clients look for specific projects, others want ongoing support – whatever you need we can work with you to deliver it.

Our projects can range in time from a few days to a few months, or something that is ongoing support.

Sample Projects:

Develop trading strategy and governance:

Our client wanted to implement a coherent hedging strategy to manage how they approached the wholesale market to manage their customer portfolio.

We developed and implemented an approach that provided clear objectives and controls.  By setting a defined risk appetite we allowed the trading team to hold risks that were acceptable to the board, and provided the trading team with clear authority and accountability for managing the portfolio.

Internal cost allocation

Our client wanted to understand how effective it was at setting prices for customers, and how effective its trading strategy was in adding value.

The mechanisms implemented allow a clear tracking of the effectiveness of pricing different cost elements, and the margins made through commercial optimisation – allowing the business to understand the cost and benefit of different actions along the value chain. 

Green energy optimisation

Our client wanted to be able to access the green energy market to secure energy for its customers at the most attractive price possible.

Through understanding the position to be filled, and the market dynamics of renewable energy we developed a mechanism for securing the required certificates at the right price and time.