Energy prices are growing increasingly volatile.
The importance of energy market fundamentals (i.e., supply and demand) are waning while non-fundamental factors – geopolitics, technology, and monetary as well as climate policy – look to be on the rise. In deregulated markets, businesses need to answer three critical questions – when to purchase (timing), how far out to purchase (duration) and how much to purchase (exposure). In today’s market, poor decision making can be very costly. To help businesses meet this challenge, NUS provides Procurement and Risk Management services. As part of this service, NUS works with you and your team to identify your organization’s overall risk tolerance and sourcing objectives. Based upon this information, NUS prepares a Strategeic Energy Risk Plan (SERP) specifically for your organization detailing how the program is to be administered (i.e., the processes and procedures for transacting energy purchases) and the allowable levels of market risk current and future years (i.e., target prices, volume exposure, forward purchasing). As part of the implementation of your SERP, NUS will prepare and issue comprehensive RFPs to secure supply offers from available energy suppliers. These offers will be reviewed, ranked, and, with your approval, the selected offer will be implemented. NUS monitors markets, notifying you when prices reach your SERP price triggers and affect agreed energy purchases. Throughout our engagement, NUS will be monitoring the markets, notifying you when prices reach your SERP price triggers and affecting agreed energy purchases. We understand that your organizations energy procurement objects may change over time, so we regularly review your SERP with your team to ensure it remains current.