Original thinking for energy price optimisation
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 and match your requirements with a purchasing strategy with pre-agreed risk parameters. Each Options strategy has its own level of price optimisation, risk and cost certainty, to give you complete peace of mind, Options is fully managed by our expert team of Traders, who have a proven track, over many years, of optimising prices for our clients.
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 allows you all the benefits of flexible purchasing, together with greater purchasing power in negotiating the supply contract, while offering you the benefit of your own bespoke strategy and a level of risk you’re comfortable with.
Inenco’s award-winning energy traders have a proven track record, over many years, of optimising prices for our clients. Our traders, using a blend of technical and fundamental analysis 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. Giving you complete peace of mind, and more time to concentrate on your core business.
Capped – providing you with upper budget protection
A capped approach provides price certainty and protection against rising prices, and may enable 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 to be set at the outset of trading. It gives you upper price 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, but also delivers high price optimisation. It suits organisations that are seeking a good price, but with a focus on budget and price certainty.
Fixed – securing a set price for energy at the time of buying
The fixed strategy under Options gives you the benefits of a fixed price tender, but with a more considered approach to achieve better results.
Supplier margins are pre-negotiated as part portfolio tender leaving us free to concentrate on the commodity element– the largest element of price we can impact.
We will look to fix out all the volume allocated under the fixed option at a single point in the time prior to the contracted delivery period. We use our full market analysis suite to identify the likely low points in the market to buy this volume.
What is the benefit to you?
This strategy allows the opportunity to achieve price certainty at the time of buying, taking one decision and removing the risk of further upwards price.
What kind of organisation is this strategy designed for?
This is one of the highest risk strategies under Options, as whilst it provides price certainty it does not allow you to manage price as effectively as some other strategies This strategy therefore suits those clients where price certainty is key.
Trend – hedging your energy volume to take advantage of market trends
This can be a high performing strategy. It aims to increase purchases in a rising market, and reduce hedges when markets are trending down.
The trading decisions are based upon technical analysis, used to identify the direction of the medium-term trend in the market and make the best use of market volatility.
What is the benefit to you?
This strategy uses market volatility to your advantage.. It takes more risk than the capped strategy, so can produce better results, especially when prices are high / are falling.
What kind of organisation is this strategy design for?
For clients that are wanting to take more risk (compared to the capped strategy), in return for a potentially better price.
Prompt – placing volume on the Day Ahead or Month Ahead markets, offering the highest rewards when prices are low
This strategy is typically used for a smaller tranche of volume, backed up by the capped or trend options. 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 lowest price, but prices can be very volatile and also rise to very high levels.
What is the benefit to you?
This strategy gives you access to hoped for, low prices It can also be used by clients with uncertainty over volumes, as volume is not forward bought.
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 during the period of delivery, or our uncertain over volume
“With our Options portfolio we seek to apply the right strategy for your business and then optimise price for you under this strategy.”
Why Choose Inenco?
Our Risk Management team have an unrivalled knowledge of trading strategies and supplier products, meaning we apply the right trading strategy and negotiate the best contract for you. Inenco’s award-winning energy traders have a proven track record, over many years, of optimising prices for our clients. Our traders using a blend of technical and fundamental analysis 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.
What Information Do We Need To Get Started?
- Your supply list
- Your current supply contract
- 12 months of half hourly consumption data per supply
- 12 months of invoices per supply (or 12 months of consumption data)
- Any estimates of planned changes affecting future consumption
- Signed Letter of Authority (LOA)
- If available, Your current trading positions.
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