Energy has become a risky overhead. Many of our large business customers with high energy usage are now purchasing their energy in a more “flexible” way. This allows them to better manage market volatility risk and budgets.
How volatility affects your energy budget
In 2011, the cost of energy for an organisation using 240GWh of electricity would have ranged from £10.2m to £13.7m (i.e. a volatility of 34%), depending on the timing of their energy purchases.
Electricity market versus FTSE 100
This graph compares the FTSE index since Nov 09 with an index of the UK wholesale electricity price over the same period. There is a far greater degree of volatility in the electricity market than in the FTSE. On a daily basis wholesale electricity prices can rise and fall by a considerable amount making the timing of purchases crucial.
What are flexible purchasing contracts?
Flexible contracts provide the ability to spread energy purchasing according to an energy price risk management strategy. We can provide the right contract that fits your circumstances and approach.
Our flexible contracts
EDF Energy has developed a market-leading range of flexible contracts. Today some of Britain’s largest and best known organisations purchase their electricity using our flexible contracts.
In part that’s due to our technical expertise and experience in managing these types of contracts. Another key reason is the support we provide to help our customers understand and prepare for this type of energy purchasing.
Energy buying is a complicated, technical subject - it’s this type of support that can make all the difference.
Find out more
For more information on our flexible purchasing contracts see - Contact us