Flexible ENERGY PROCUREMENT
Flexible energy buying allows an energy consumer to benefit from market conditions throughout the contract term rather than commit to a fixed price on a given day for a 12, 24 or 36-month contract length.
what is flex?
Flexible purchasing strategies are implemented to protect against volatile energy market conditions and shifting wholesale prices. When compared to traditional fixed price products -at the expense of budget certainty- longer term cost savings can be achieved by making multiple purchases over a longer period, resulting in a commodity cost closer to the wholesale season average price, rather than the gamble presented by fixed pricing through a single purchase wherever the market may be at that time.
The purchase of any commodity on an open market is risky given prices’ predisposition to change. Spreading this risk over multiple trades is the primary objective of flex buying and determines the approach.
Multiple purchases of energy spread risk, resulting in an overall price closer to that of the market average for a season
strategy
Given that more energy users are using flexible purchasing to protect against fast moving wholesale energy markets, we are able to work with individual customers to develop a bespoke risk strategy which will meet the needs of the individual business, in order to benefit from the best possible prices for gas and electricity.
Our insight into wholesale markets allows us to forecast any threats that energy markets may pose to energy buyers and mitigate against these by fixing, trading or selling back energy to spread the risk of buying a total requirement.
Our Flexible Fund for both power and gas allows energy users to participate in flexible energy procurement through a basket whereby the collective volume of all fund entrants is traded as one therefore all achieving the same price. Position and cost reports are available 24/7 through the platform.
Flexible energy commodity procurement through ukgp includes:
Flexible reporting; real time cost positioning against budgets and data
Customised purchasing strategy with automatic high and low tripwires, hedging ratios and price point alerts
Choice of bespoke flexible supply contracts
Direct access to experienced trading desk
Daily market commentary and weekly market reports giving clear views on commodity pricing past, present and future across gas and power in addition to wider economics, geo-politics and oil pricing
Easy to understand results, not involving spreadsheets for clarity and sharing across the business