Our tailored approach
We can assist with one or all of the below services.
We assess the market and recommend the best progressive purchasing product that aligns with your business goals. We consider advantageous product attributes and appropriate retailer margins and premiums.
We set up a governance framework that reflects your risk tolerance. It provides the ability to opportunistically lock-in good prices, whilst ensuring budget certainty and pre-agreed maximum price thresholds. This includes:
- Assisting with the set up of a risk committee (if needed)
- Assisting in developing a risk policy which outlines exposure limits, budgeting timeframes and maximum spends, along with reporting parameters
- Using a Value at Risk (VaR) methodology which is applied to your portfolio’s usage profile into the future, to fully visualise and manage price risk and exposure levels
- Transaction recommendations supported by data analytics and risk policy parameters
- Interacting and transacting with your retailer when necessary, to action price lock-ins
- Assistance in developing budgets, capital at risk lines (maximum spend) and baselinesMonthly management meetings to discuss market context and advance strategy
We proactively manage the product on your behalf following the VaR methodology. We share your daily electricity position, reporting your position for the following three calendar or financial years on a daily basis, and ensuring robust risk management.
We monitor your position against price fluctuations in the market and produce a daily VaR report. The report recommends buying decisions based on factors including: VaR, quarters trading below historic average and structural market moves.
Combined with Enel X’s robust risk management practices, progressive purchasing can allow you to:
- Take advantage of lower energy prices in the market as they arise
- Avoid renewing a contract when energy prices are high
- Spread the timing risk of purchasing all your electricity at one time
- Adjust exposure to the market based on your business strategy
- Make savings compared to traditional fixed price contract
- Quickly adapt to market changes