Energy Procurement Funds

Funds

Energy Funds or BasketAn Eco Elite – Energy Quote JHA fund, otherwise known as a Basket, uses a flexible supply agreement as opposed to a traditional fixed price contract as a way of procuring your energy.

Our power funds provide customers whose volume falls below the threshold for an individual Flexible contract access to products previously restricted to large I &C consumers.

Eco Elite Energy Quote JHA funds are sophisticated products developed by the strategy and risk teams. The performance achieved by our traders and dedicated fund managers are of the highest quality.

Typically our funds consist of groups of companies from a wide range of industries looking to achieve savings by accessing wholesale market prices.

By combining your volume with that of other companies, the resultant volume allows our traders to make a multiple purchases, on behalf of all the members of the fund, in accordance with a predefined purchasing strategy.

Eco Elite EQ JHA manages the procurement process, keeps you informed of the fund’s performance and finally confirms the resultant energy costs - rates.

Why use a flexible Purchasing Fund

  • To obtain products and strategies that would be unavailable to users of energy with volume of less than that traded on the wholesale markets (circa 48GWh)
  • To remove the premiums associated with stand-alone Flexible products for those users
  • To take advantage of the aggregation of client volumes into a much larger portfolio, a greater volume allows more opportunities to manage risk
  • To take advantage of a range of strategies, which cover a range of appetites and approaches – a choice of picking, a product, which best suits your business risk principles
  • To receive pricing on the wholesale markets closer to delivery, which historically have proven to out-perform a fixed price contract
  • To protect your business from rising or volatile markets through the correct management of a risk through a strategy.

Benefits of a Fund

  • Remove the risk associated with accepting a fixed price based on market prices on a single day (1 of 250 Trading days)
  • Enjoy a range of benefits not offered by a traditional fixed price contract.
  • Volume tolerance and mutual support
  • Free up time to concentrate on core business
  • Receive market intelligence to help plan for the following year/years
  • Have an option to extend the contract at short notice, in order to hedge volume, therefore protecting your business from the impact of rising prices

Risk: Managed

Energy procurement services

With wholesale markets reacting to global events, flexible purchasing, either short or long term, can deliver exceptional results by exploiting price opportunities and also protect your business from volatility - price spikes. However, it should not be seen as a means of securing the lowest possible price, but as a risk management tool for securing you energy costs in a increasingly complex and volatile market conditions.

There are various types of risk when looking at funds, low, medium and high. An account manager will be happy to discuss all options with you to allow you to make an informed decision.

For further information please contact us on 0208 317 7800 or of you prefer fill out our contact form and a Key Account Manager will contact you within 8 hours.