Bespoke Flexible Contract
Energy price risk in the UK energy markets needs to be measured and managed in an effective and robust way that matches the energy procurement objectives of your business. Whilst objectives can vary, the most common ones are to:
There are a number of energy purchasing strategy options available to your business and the following tactics can be employed to manage risk and subsequent expectations. These are shown for illustration only below:
Risk Management Strategy Workshop
When a flexible contract is awarded with a supplier following on from a comprehensive end to end flexible tender process, Catalyst Commercial embarks on an inclusive and interactive risk management workshop with customers. The workshop allows the beginnings of the development of a risk management policy which lays out the basis within energy price risk will be effectively managed between all parties involved.
Latest Markets Trends
Through our monthly or weekly energy market reports we report on the trends in wholesale price movements and the key drivers likely to effect future commodity charges.
It is important to recognize how fast energy markets can develop and opportunities can exist within a short timeframe. Catalyst Commercial can execute commodity purchases under the predefined conditions laid out in the risk management strategy and is able to work autonomously or alongside decision makers within your organization. We do not speculate on positions and try to second guess the market but we do fulfill and deliver on a plan of action.
Performance will be measured against the reference price used by the supplier to produce the billing rates. This is based on a market and typically when the flexible framework is agreed with the supplier. However, there are a number of ways reference prices can be set. The reference price is compared to the physical achieved price and the difference between the two will result in a debit or credit on the energy bill. Should customers wish to avoid adjustments on their energy bill, a number of alternative options are available to more than accommodate this.
On behalf of customers, Catalyst Commercial employs a transparent process when producing price tactics. Triggers can protect your business against adverse market events and ensure the appropriate course of action is taken when market opportunities come about. Triggers that protect against price rises are known as upper price triggers and triggers that take advantage of lower prices are known as lower price triggers. Contact Catalyst Commercial to arrange a meeting or discuss methodologies used at contact hyperlink.
Catalyst Commercial monitors the short term and forward market on a daily basis and runs various position reports to determine commodity costs for each contract period. The appropriate course of action is taken to ensure the risk management strategy is adhered to. Contact Catalyst Commercial to arrange a meeting or discuss work and process flows associated with the execution process at contact hyperlink.
Our ability to monitor energy markets and trends is second to none. At Catalyst Commercial, we pride ourselves on the investment made to deliver flexible solutions to our customers. Complexity does not phase us. Every customer needing a tailored solution has uncompromising access to no less than three experienced energy buyers with a primary buyer assigned for details on all market related products and market queries. Some features of our capability is listed below (non-exhaustive list):
Flexible Product Features and benefits at Catalyst
Our Innovative Energy Solutions can offer a range of enhanced benefits such as smart tariff technology and blended demand side response purchasing services.