We can save you more than the standard risk reductions offered by other brokers and risk managers. We do this by offering a broader range of hedging strategies. These include spot price buying and a highly efficient hedge that works against uncertainty and price spikes, called a “harness hedge”.
Our risk delivery framework is highly structured. We use it to make sure that the risk services are fully tailored to our clients’ needs, that we understand them thoroughly and manage them closely.
To give you some idea of potential cost savings, spot gas prices have averaged around 20% lower than forward prices over the past seven years, with 11% savings on electricity. However, there are risks involved — spot gas prices have actually been more expensive for a third of this period.
The first stage in our delivery framework is a risk strategy workshop. It’s run by experienced Beond risk managers for our clients’ internal stakeholders. The workshop involves training on energy market risks, hedging options, and assessing the energy buyer’s risk/reward preferences.
Beond offers the full range of hedge strategies, and we will recommend whatever is most suitable for clients’ specific needs. We tend to avoid speculative hedges, as we believe the market provides a reasonable view of future prices. However, given the right circumstances, we accept that speculative decisions can pay off.
Our hedging strategies include:
Beond publishes insightful market intelligence based on our own findings and insights. Our Weekly UK Insight focuses on short term price risk drivers, while our Monthly Price Risk Report gives a 12-18 month outlook, together with recommendations.
Our Strategic Insight Reports address: