A blended approach to risk management

We’ll help you to optimise your energy price

Our Options Portfolio gives you access to flexible energy procurement. We’ll work with you to determine your attitude to risk management and spread your volume across up to four different purchasing strategies under our pre-agreed risk parameters, and managed by our FCA-accredited trading desk. Each strategy has its own level of risk and budget certainty, and you can shift volume out of one strategy and into another if you so wish, keeping you in total control of your energy.

We aggregate the volume of a group of clients with similar profiles and trade the volume together as one portfolio, giving you the benefits of flexible purchasing access but with your own bespoke strategy and working within pre-agreed risk parameters. Instead of watching the energy markets you can concentrate on the core priorities of your business, while our traders use their expertise to trade your energy and secure the best possible price.

“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.”

Matt Osborne - Principal Risk Manager

Capped – providing you with upper budget protection

A capped approach provides price certainty while enabling you to take advantage of any downward market movement.

What is the benefit to you?

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 budget certainty, but allows you to take advantage when the market falls.

What kind of organisation is this strategy designed for?

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.

 
 

Fixed – securing a set price for energy at the optimum point on the market

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 of the volume 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 choose the optimum opportunity to hedge this volume.

What is the benefit to you?

This strategy allows the opportunity to optimise your price, taking one decision and waiting to see how the market performs in the remaining time before the delivery period.

What kind of organisation is this strategy designed for?

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.

Trend – hedging your energy volume to provide a competitive price

This is the best performing strategy versus the market under Options. It aims to increase purchases to protect an upper budget position in a rising market, protecting from further rises. Our traders unlock volume when the market is falling, taking advantage of market decreases.

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.

What is the benefit to you?

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.

What kind of organisation is this strategy design for?

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.

 
 

Prompt – placing volume on the Day Ahead or Month Ahead markets, potentially offering the highest rewards in a falling market

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 of the market, but it can see fluctuation from the absolute low to absolute high within a short space of time.

What is the benefit to you?

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 drops very low, you can achieve the best available price under this option.

What kind of organisation is this strategy designed for?

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.

Our Approach

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What Information Do We Need To Get Started?
  • Your full site and meter site list;
  • Your renewal dates;
  • 12 months of consumption data;
  • 12 months of invoices per meter site (or 12 months of consumption data);
  • Estimates of planned changes affecting future consumption.
 

Why Choose Inenco

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.

Our long standing relationships with suppliers allow us to negotiate better terms on your behalf and provide an unbiased recommendation to you based upon our understanding of your requirements. 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.