Flexible energy contracts with Control Energy Costs

15 Feb 2024

Published in: Member News

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In the dynamic landscape of energy management, employing an internal resource to manage your flexible energy contract can be a significant risk.

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In the dynamic landscape of energy management, employing an internal resource to manage your flexible energy contract can be a significant risk. Control Energy Cost’s flexible purchasing option means you always have an eye on the market. In addition, Control Energy Costs bring together businesses that are not able to participate in the wholesale market individually. This adaptable service means you have access to a market that was once reserved only for the largest organisations. To safeguard your interests and ensure a seamless experience, it's crucial to pose four key questions to the people managing your flexible energy contracts:

1. How much do they know about you? Business measures of performance vary, as do strategic targets and profit margins. Energy commodity price risk management should be tailored to your individual exposure and business goals. Has your consultant asked meaningful questions to ascertain your risk appetite and the impact of energy costs on your bottom line?
2. What tools and strategies underpin energy price risk management? Understanding the background, knowledge and experience of your energy contract manager and their team is paramount. Ask probing questions to determine their expertise in the field and inquire about their professional certifications and hands-on experience in managing diverse energy portfolios. This scrutiny ensures that you can trust their skills and knowledge to effectively safeguard and optimise your energy contracts.
3. Is the risk manager deploying statistical and technical tools based on live market pricing or are they simply relying on gut and feeling? How far out is your risk manager looking? It is easy to become focused on the short-term impacts of factors which move energy markets. However, we know that energy markets can be very quick to react and very slow to correct. Is a short-term risk management strategy right for your business or should we be looking to manage risk further out?
4. How well do they communicate market information? Effective communication is key in any partnership, and your relationship with your energy contract manager and their team is no exception. Enquire about the frequency and quality of communication you can expect. How often do they reach out to you and are you satisfied with their explanations of market information? A transparent and communicative manager can keep you informed about market trends, enabling you to make informed decisions about your energy contracts.

Our team

Control Energy Costs employs qualified risk managers to enhance your confidence in the management of your flexible energy contracts. We help to proactively manage your risk and ensure a more secure and optimised energy strategy for your business.

Nick Heng, Head of Flex Procurement and Risk

In 2016, Nick founded a consultancy to provide businesses with expertise in energy and utilities procurement. His most recent role as a Global Procurement Manager at Johnson Matthey saw him as a key driver of sustainability, delivering in excess of £3m PPV savings in one year. His credibility in procurement is undeniable and he’s a critical point of contact for clients looking to manage their risk and drive their sustainability initiatives.

Mike Stafford, Flexible Purchasing and Risk Manager

Mike has over a decade of experience in consultancy and flexible energy procurement, combined with experience working for meter operators, independent suppliers and Wales & West Utilities. He plays a crucial role in helping clients understand the most complicated of beasts – the global energy markets. Mike works closely with each client to understand their unique commercial imperatives and attitude to risk.

Nigel Addison-Evans, Client Relationship Manager

Nigel is a key point of contact for our memberships and strengthens the value we can offer. Nigel has over 18 years of experience in the energy sector. He comes from a supplier and consultancy background, helping both private and public sector clients to manage their energy and reduce their carbon footprint. Nigel is passionate about helping clients reduce their carbon footprint, providing support and guidance on carbon reduction strategies, compliance, renewables, fixed and flexible procurement for power, gas and water, as well as billing queries, siteworks and metering.

Our trading platform

Our trading platform gives us to access a third-party tool called LSEG Eikon which allows us to:

• Access live wholesale market prices across a range of national and international gas and power markets
• Apply technical and trend analysis to contracts within those markets
• Access leading-edge news, commentary and analysis
• Create bespoke analysis and reporting based on our own internal criteria
• Study market fundamentals, including weather, supply and demand/imports, storage and generation levels, relevant commodity markets for oil, coal and carbon, and live currency exchange rates

This helps ensure Control Energy Costs’ guidance is best-in-class, informed by rigorous technical analysis and a firm grasp of market fundamentals.

Benefits for Black Country Chamber of Commerce members

In our exclusive partnership with the Black Country Chamber of Commerce, we bring a multitude of benefits to the Chamber's members. Being deeply rooted in the Black Country, Control Energy Costs is uniquely positioned to understand and cater to the local dynamics. Unlike the members’ previous access to national providers, Control Energy Costs offers a more personalised approach, considering the region's higher-than-average concentration of industrial businesses. These businesses use a lot of energy, often unaware of the intricacies of energy management and how they can save money by managing it more effectively. They stand to benefit from Control Energy Costs’ core and supplementary services along with consultative advice. The positive feedback received highlights the effectiveness of our services in optimising energy usage and delivering tangible cost savings for businesses in the Black Country.

Contact our Client Relationship Manager, Nigel Addison-Evans, at nigel.addison-evans@cec.uk.com or 07500 027480 for more information.