Energy prices fluctuate

Events around the world – financial, geopolitical or fundamental factors affect energy prices. If you cannot pass energy price increases on to others, then you have an exposure you need to eliminate. Cap this exposure with energy price risk management.

Five good reasons to manage your energy price risk

There are a variety of reasons to manage your energy price exposure and escape the volatility of the fluctuating energy prices. Below we have listed the five we find most important.

1. Protect

Keeping energy costs within a predictable range protects you from unexpected changes in the price of energy - changes that could otherwise seriously impact your budget and profit margin.

2. Stabilise

Efficient risk management strategies help to stabilise your cash flow and to maintain steady prices along your supply chain.

3. Focus

Energy price hedging can be complex. Employing the expertise of an energy price risk management partner allows you more time to focus on your core business rather than information gathering.

4. Compete

Proactive energy price risk management allows you to react quickly to market changes. By turning volatility into opportunity, you gain a competitive edge - a potentially critical factor for marginal businesses.

5. Shine

Investors and bankers place high value on effective risk management, which can put you in a better position to negotiate improved financial conditions.

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