Risk Management

Protect yourself from price volatility.

Today, managing energy is more complex than ever. Not only are there myriad rules, regulations and price structures for you to continually navigate, but energy itself is a volatile commodity prone to sudden and dramatic price swings.

Any effective energy management strategy must account for these variables – but easier said than done. No one knows when and where energy prices will move next. No one. That’s why we build Risk Management into the Planning process of every client engagement. We’ll work up front with you to understand your risk tolerance and purchasing objectives – is your priority to buy under your budget, protect yourself against major price movements, or buy as low as possible or better than your competition?

With this information in hand, we’ll help you establish an energy risk policy (or support your current one) that can guide future decisions, limit your profit-at-risk and help you reach your goals. We’ll not only apply this policy to source and secure the best energy products for you, but we’ll also help proactively manage your exposure throughout the contract terms. Our “trigger-based” approach enables you to track progress against your budget and stay on top of fast-moving markets. At World Energy, we use three kinds of automated triggers to help manage risk:

  • Executable (for natural gas only) – An automated transaction occurs based on price thresholds – high and low – determined in conjunction with the customer. With this type of trigger, you can hedge against runaway highs and capitalize on attractive lows in a timely and efficient manner, all within the framework of your established risk management strategy.
  • Informational – Once a pre-designated market price (again, high or low) is reached, a trigger automatically alerts you and your team at World Energy. An e-mail is sent to all parties, spurring a discussion on whether or not to transact.
  • Market Update – With this time-based trigger, you can ask to receive regular market pricing updates relative to your current contract, informing you of market movements and helping you monitor progress against your budget.
  • Energy Market Updates

    Stay up to date with what's happening in today’s energy markets.

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  • Managing Energy Risk

    Our recent webinar on risk management is now available on demand. Tune in to get the basics on mitigating your energy price risk.

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  • Case Study

    Learn how World Energy helped one company manage their energy risk and lock in nearly $4M in savings.

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