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In today’s volatile market, having a robust hedging strategy is crucial. The success of a flexible procurement strategy depends on how well a company can predict and react to market changes. With a hedged approach, you get the best of both worlds:
Stability: The fixed portion of your contract acts as a ballast, ensuring you have a stable foundation.
Flexibility: The floating portion allows you to take advantage of rate decreases, optimising your costs.
Recommended Strategies:
* Active, Managed Hedging: Implement an active approach by establishing price and time-based triggers in your contract. This allows you to lock in multiple price blocks in response to pre-determined milestones, whether they are cost-related or time-specific.
* Layered Hedging: Another effective strategy is layered hedging. This involves gradually securing fixed prices for portions of your energy needs over time. By layering your hedges, you can average out costs and reduce the risk of market timing. This approach provides a smoother transition between different price points and helps mitigate the impact of market volatility.
With our flexible energy consortium, both customers and suppliers gain insight into future energy costs (using Mark-to-Market) and learn the benefits of not purchasing the entire energy requirement upfront (as opposed to a fixed price contract).
Also, in the FCT energy consortium we have the extra edge. FCT carries prices from various software platforms for gas and power and have the ability to capture European prices and trades in the near future. This allows FCT to make timely and informed decisions.
Contact us Today to Stay ahead of the curve and secure your financial stability while maximising opportunities.
We provide individual flexible electric and gas frameworks for consumptions over 5 GWH. We provide the FCT energy consortium for clients who wish to take advantage of flexible purchasing who have consumptions below the required minimum volume thresholds.
