Commodity price risk management
1. Energy consulting
We like to keep things simple. We do this by considering your energy needs from four perspectives:
Be great at buying energy and make your own where right to do so
Have the right long term aims & plan
Use energy wisely & be more efficient
Sustainability & Insight
Be aware of the market & the impact of your actions
Every large buyer of energy is different with shifting internal needs, so there is no cookie cutter approach to the way we work. We pride ourselves on first understanding our customer’s needs and then delivering tailored solutions that not only save money but plan for the future.
Our consulting projects focus on finding ways to improve your situation.
Our work typically focuses on one or all of the following:
We review your existing strategy, and your ability to deliver it. We benchmark you against other similar sized organisations. And we then suggest where to improve your strategy and how you need to boost your capability. It’s geared towards outlining ways for you to improve your performance, achieve better commercial outcomes, and be better prepared for an uncertain future.
We identify areas to reduce costs and improve how energy is managed and used across your lighting, heating, cooling and air management needs. This includes energy efficiency, hedging performance, capacity reviews, latest smart/ IoT technologies, and so on. If needed, we can conduct site audits to identify opportunities to improve your energy efficiency at a site level.
We review your hedging strategy (energy price risk management) and associated governance, assess how it all performs and suggest how it can be improved. We often find a few small adjustments to your strategy can have a big effect. And sometimes we shine a light on major areas of avoidable risk.
TPI/ broker assessment
There’s no smoke without fire, as they say. If you think your third party energy manager is under performing, they probably are. We will review their performance and highlight ways to improve. We’re also experienced at exiting clients from onerous broker’s contracts.
Other ad hoc projects
We’re happy to take on any brief. Here are some examples of recent projects:
- Establishing energy management on a global basis
- Procurement activities – tendering, negotiating, contracting, etc.
- Energy performance contracts
- Energy data strategy and solutions
- REGOs and buying green energy
- Demand side response
2. Energy management
In the ever changing and complex world of energy management we make things simple and easy to understand as well as control, measure and implement.
And we don’t take work on commissions, so financially we’re on the same side as you.
Our service typically involves:
- Setting up and running advanced trading and hedging strategies, and then on-going advice on when and when not to hedge
- Global or multi-national solutions as required
- Daily tracking of your energy price risk position, using our proprietary AMO platform
- Frequent market insight reports proactively giving valuable insights into what’s driving energy prices, putting you more in control
- Procurement – tendering, negotiating, contracting activities
- Energy data management, analytics and reporting
- Adding and removing sites to your contract
- Assistance with budgeting and forecasting
- Bill validation
- Capacity reviews
- Supplier management – relationship, performance and contract management activities
- Ad-hoc advice and guidance
Much of this might sound like the usual energy management service. And many ways it is – but we don’t turn the process into a sausage machine as we know that as our clients are all large users of energy, they need a level of service a cut above that. We provide a very active and conscientious service tailored to each client’s ever-shifting needs.
3. Commodity price risk management (CPRM)
Commodities and raw materials where we have experience of helping organisations:
How we do it
Whether it’s an Energy or a wider Commodity Price Risk Management consulting project, the approach we take typically follows the following path:
We start most projects by working to understand your current situation, needs, frustrations and plans. Our aim is to understand how well your existing strategy and approach is meeting you needs, both today and in the future.
We then build the business case for improving how it’s all managed, including the expected financial and non-financial benefits, and any associated costs.
You are then be in a position to make informed decisions around how to move forward: which opportunities to implement, when, and what external support is needed.