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Taking control of your energy price risk

Hedging energy prices reduces or eliminates a company's exposure to fluctuating energy costs.

The risk management process

Our simple, yet flexible, three-step-process kick-starts your energy risk strategy and keeps it fine-tuned to the market. Together, we’ll create a mutually agreed plan that outlines – from A to Z – the steps we’ll go through. Should a change in your circumstances arise, we can refine the plan at any point in the entire process.

Step 1: Gathering data and identifying goals

Taking control of your energy price risk is easy with Global. Our simple, yet flexible, three-step-process kick-starts your energy risk strategy and keeps it fine-tuned to the market.

Your Energy Risk Manager will start by working with you to gain an understanding of where you are exposed to energy price fluctuations. Discussion points may include:

  • Your current and future business environment
  • Your current financial position and budgets
  • Stakeholder objectives and needs
  • Your attitude to risk
  • Required energy consumption, and
  • Energy cost calculations

Naturally, all of this information is regarded in strictest confidence.

Step 2: Preparing and implementing your energy price risk plan

When you and your Energy Risk Manager have gained an understanding of your exposure, step 2 of the three-step-process can begin. Your Energy Risk Manager will suggest a range of tools to reduce your energy price exposure and work with you to formulate an overall energy risk strategy. You will get:

  • One knowledgeable client contact person with access to all resources
  • A full exposure analysis of your business
  • An independent outline of the implications of various strategies
  • Help packaging and presenting your case to senior management, and
  • A customised manual to help you trade with confidence

Naturally, all of this information is regarded in strictest confidence.

Step 3: Reviewing your plan

An important part of the process is to regularly review the performance of your energy price risk plan with your advisor. Your ongoing relationship with your Energy Risk Manager may involve:

  • Tracking your account
  • Valuing and reviewing your positions
  • Informing you of new opportunities as they emerge, and
  • Consultations as required

Going forward, we will continue to keep you updated on the latest developments in the energy market throughout the duration of your contract.

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