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 The conflict within the energy procurement process is born out of the price uncertainty associated with a traded commodity and the conflicting objectives facing your organisation, namely:
- Control of Absolute Cost
- Relative Performance against the Market
Volatility in the energy commodity markets has led many companies to review their energy procurement policies and processes. The historical way of purchasing, “fixed price, fixed term” is now seen as out of date and requiring overhaul. Using this traditional methodology has brought: - Opportunity cost and loss of operational margin when fixing at a market high before prices fall
- Difficulty in managing and planning operational budgets due to price fluctuation after the fixed term
- Increased risk and speculation because of and timing of purchases
- Time, money and resource issues because of annual tendering and negotiation
To overcome this Encore incorporate fully flexible managed price strategies. The most effective solution is for energy prices to be set and unset with your supplier. This ensures that there is less risk to your market position, protection against market volatility and increased budget certainty. Encore’s combined risk management and energy experience allows us to provide our clients with in-depth knowledge and expertise to support strategic decision-making. Encore will ensure that you will be able to: - Comply with your corporate governance requirements and establish a robust risk policy
- Utilise a pricing strategy which will avoid loss of operational margin and opportunity cost
- Manage prices very effectively, taking away issues surrounding the management, reporting and planning of budgets
- Use our knowledge to support your tendering and negotiation with suppliers, saving you time, money and valuable resource
- Decrease risk with a process called Value at Risk (VaR) to help control when you transact and how you manage your budgets.
Encore do this cost effectively, either sharing the risk/reward with you on a performance basis or by charging a simple monthly fixed management fee. No hidden charges, No sweetheart Deals, No basket deals, No slice of your wholesale price. Simple old fashioned transparent pricing – How refreshing!
To send a message to our team to see what we can do for you - click here.
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