Procurement strategies shaped to suit your risk appetite
Options helps you get more value for your business from your energy procurement strategy. We’ll work with you to determine your attitude to risk management and spread your volume across up to four different purchasing strategies under your pre-agreed risk parameters. Each Options strategy has its own level of risk and budget certainty, allowing you to balance your desire for the best price with your exposure to the market. To give you complete peace of mind, Options is fully managed by our expert team of traders, who have a proven track record of outperforming the market for our customers.
Once your strategy has been defined, we aggregate your volume with that of a group of clients with similar profiles and trade the volume together as one portfolio. This gives you all the benefits of flexible purchasing access while offering you the protection of your own bespoke strategy and a level of risk you’re comfortable with.
Our trading systems provide complete visibility of the energy market, empowering our expert traders to use their experience and Inenco’s purchasing power to get you a better deal on your energy. They have a proven track record of outperforming the market for our customers, meaning you get a better price, complete peace of mind, and more time to concentrate on your core business.
A capped approach provides price certainty while enabling you to take advantage of any downward market movement.
This strategy allows you to set a maximum commodity price at the outset of trading, above which your price will never exceed. It gives you upper price certainty but allows you to take advantage when the market falls.
This is the lowest risk strategy under Options. It allows you to take a position in the market and then benefit from any downward market movements under a pre-determined upper limit.
The fixed strategy under Options gives you the benefits of a fixed price tender, but with a more co-ordinated approach to achieve better results.
Supplier margins are pre-negotiated as part of the supplier tender when the portfolio is set up leaving us free to concentrate on the commodity element.
We will look to fix out all the volume allocated under the fixed option at a single point in the 12 months prior to the contracted delivery period. We use our full market analysis suite to identify the likely low point in the market to hedge this volume.
This strategy allows the opportunity to achieve price certainty at the time of buying, taking one decision and removing the risk of further price movements in the remaining time before the delivery period.
This is one of the highest risk strategies under Options. You take your position and then wait to see how the market plays out for the rest of the hedging window.
This can be a high performing strategy. It aims to increase purchases in a rising market, to protect from further price rises.
The trading decisions are based upon technical analysis, whereby we use complex algorithms to identify the direction of the medium term trend in the market. In reality, this means that purchases are made close to market movements and make the best use of market volatility.
This strategy uses market volatility to your advantage rather than it presenting a risk. This strategy uses unlock transactions to reverse a trading decision and allows you to take advantage of a falling market. This strategy makes the best use of our trading desk, harnessing the technical expertise to achieve the best result for you.
This is a medium risk strategy under Options. It protects against rises in the market, but there is no absolute cap level. You can take advantage of any downward market movements, allowing you to improve your price.
This strategy is typically used for a smaller percentage of volume, backed up by the capped and trend options, under which you forward hedge and find an upper budget position. Volume is either bought on the month or day ahead markets and is bought during the delivery period.
This strategy does not take any account of forward market movements. In falling markets this option allows you to achieve the absolute bottom prices available on the market, but it can see fluctuation from the absolute low to absolute high within a short space of time.
This strategy seeks to take full advantage of the most favourable prices around, but in doing so you are exposed to the full swing of the market. If the market peaks and the volume is hedged high, this could have a detrimental effect on your delivered price. Likewise, if the market price drops very low, you can achieve the best available price under this option.
This is a high-risk strategy under Options. There is no cap level or protection from the market. This is an option for those looking to optimise price after the point of delivery.
“With our Options portfolio we create a bespoke purchasing profile allowing you to spread your volume across four different strategies, giving you access to a unique approach to risk management.”
Inenco’s award-winning energy procurement team are the most experienced in the market and have a proven track record of outperforming the market on behalf of our clients. Our traders have access to a range of market intelligence sources, from commodity markets to long range weather forecasting, to give a complete view of market influences and inform our purchasing decisions.
We negotiate margins in advance based on the volume of the entire portfolio and we leverage this additional buying power to secure lower margins. Our internal systems critically analyse complex supplier offers and are able to provide a balanced view of commodity and pass through costs to ensure that the offers you receive are transparent and costed accurately.
Get in touch with one of our team to discuss the process and how it can benefit your organisation
We'll help get your account set up, including loading all meter sites and lining up contract switch
Choose how you want us to buy your energy; Fixed, Capped, Trend or Prompt
You can access portfolio reports to know how your chosen strategy is performing