Energy procurement and risk management: three questions
June 1st 2008 THREE questions you should
be asking your energy
advisor:
1. On average, how far forward
have you fixed prices for your
customers?
2. How much lower than market
are your customers paying at
the moment?
3. How do you make decisions in
relation to my portfolio?
THREE questions to ask
yourself:
1. Why am I suffering from a 90%
increase in energy cost for the
next 3 years, when I could be
79% below current market?
2. With advisors claiming to be
experts in the market,why didn't
my advisor ensure my portfolio
was fixed 3 years forward before
we reached these price levels?
3. I have experienced extreme
price volatility over the past 4
years.With advisors introducing
risk management and this new
thing called VAR,why are they
only entering into this concept
now?
ONE answer:
Unfortunately you are with a
traditional procurement advisor
who founded themselves on
offering fixed price contracts or
internet / reverse auction platforms.
These advisors are trying to reinvent
themselves to meet the demands of
consumers'price volatility and need
for a risk managed approach.
As they are trying to learn in your
time YOU HAVE PAID A PREMIUM
on average of up to 35% from 2004
to 2007 and up to 79% from 2008 to
2011.
Asking the questions won't
change where you are but changing
to Encore may significantly improve
your future.
Encore understands risk and how
to manage it, protecting clients from
current price levels while providing
opportunity to benefit from price
falls – as they did in 2005 and 2007. More articles from Encore Internation: | 
