Portfolio Managed Product - energyTEAM

energyteam.co.uk

Portfolio Managed Product - energyTEAM

Portfolio Managed ProductOrganisations that wish to access and purchase from the wholesale energy markets but do not havethe required consumption, are placed collectively in a portfolio to create the necessary volume.energyTEAM will manage the portfolio, making the relevant purchases of energy for the duration ofthe contract.How does it work?With our Portfolio Managed Product the energy elementof your price is not fixed upfront. (On a fixed price productaround 70% of the price you receive from the supplier isfor the cost of energy.) Instead the energy is purchasedthroughout the duration of the contract, according to adefined purchasing strategy.Your contract will be placed in one of our portfolios andpurchases made on your behalf. You will receive an individualcontract and be invoiced by the supplier as you would on afixed price contract.• Greater leverage on tolerance levels due to these beingapplied at portfolio level rather than organisation level• Comprehensive Reporting PackageExample of a Portfolio Strategy incomparison to a Fixed Annual StrategyWhat to expect from Portfolio Managedcontracts• Access to wholesale energy market prices irrespective of thesize of your organisation• Lower risk premia• Defined purchasing strategy• Multiple purchasing decisions made on your behalf tospread risk in today’s volatile energy market• Tracks the energy market ensuring you receive a reflectiverate throughout your contract duration(12 or 24 months)• No need to try and find the optimum day (1 in 365)to place your contract as per a fixed price contract• Portfolios are tendered with suppliers who have beenchosen based on their product/service and price offering• Avoidance of stepped increases or decreases thatorganisations see when renewing a fixed price contract+44 (0) 1444 871 311 info@energyteam.co.uk www.energyteam.co.ukEnergy Procurement Energy Services Energy Legislation Carbon Reduction CRC Energy Efficiency Scheme


StrategyThe approach is simple, to ensure our clients receive a competitive market price for their energy contract duration.This enables organisations to avoid the potential stepped price variations (up or down) that many businesses face whencoming out of fixed term agreements. Our strategy is to purchase energy closer to the month of delivery, which generallytends to be lower than purchasing more than 6 months in advance.energyTEAM does not take high risks by operating a buy-sell strategy to ‘Play the Market’. Instead through our extensivesources of market intelligence, we will procure your energy over multiple purchases to achieve a reflective market price foreach month as shown on the graph below.Example Portfolio Trade ReportThis graph shows how an example Portfolio Managed Strategy avoids market highs and provides a reflective market price.Example Portfolio Product PurchasesThe graph above shows how this can be achieved. In this example five purchases were made for January 2012.Each month the price secured was different with some months being lower than others. By spreading the purchases in thismanner, the weighted average price secured is a more competitive market rate.+44 (0) 1444 871 311 info@energyteam.co.uk www.energyteam.co.ukEnergy Procurement Energy Services Energy Legislation Carbon Reduction CRC Energy Efficiency Scheme

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