Electricity Risk Management Strategy Success | Global Manufacturing Company

 

Measurable Results

This partnership demonstrates how advanced energy procurement strategy can deliver exceptional value in global manufacturing operations. Our client achieved remarkable improvement in market participation while establishing robust risk management protocols tailored to their operational requirements. 

The transition from budget risk to survival risk methodology created a competitive advantage that delivers sustained value through enhanced market timing, increased trading opportunities, and systematic cost optimization, positioning our client for continued success in dynamic energy markets. 

 


15-20% more

buying moments

10 precentile

Opportunistic target

+15%

Risk Limit

€100-150K

Structural Annual Savings

Company Overview

A global manufacturing company seeking strategic guidance to optimize it’s global energy procurement activities. This case study highlights how E&C can deliver tailored consultancy services to strengthen the company’s energy purchasing strategy and reduce exposure to market volatility.  

 

Scope

2025: 66% hedged with portfolio value at around €135/MWh   

2026: 33% hedged with a portfolio value of around €110/MWh 

2027: 38% hedged with a portfolio value of around €95/MWh 

 

 

Strategic Approach

Switch from a budget risk approach to a survival risk approach, as the survival risk approach contains more opportunity for smaller, frequent, hedges, systematic capture of opportunistic dips to follow the market downwards, maintains discipline with performance benchmark/market deviation limits to minimize surpassing the market upwards, and balance between flexibility and protection. 

 

Enhanced Opportunity Capture 

  • Frequent hedging opportunities: Smaller, more frequent hedge transactions 
  • Systematic market timing: Strategic capture of opportunistic market dips 
  • Downward market tracking: Ability to follow favorable market movements 

Disciplined Risk Management 

  • Performance benchmarking: Rigorous market deviation limits 
  • Upward protection: Systematic controls to minimize market overshooting 
  • Balanced approach: Optimal combination of flexibility and protection 

 

 

Key Benefits Delivered

Market Responsiveness Our survival risk approach enables dynamic response to market conditions while maintaining disciplined risk parameters essential for manufacturing operations. 

Operational Flexibility Enhanced ability to capitalize on market opportunities without compromising budget certainty requirements critical for global manufacturing planning. 

Strategic Balance Optimal equilibrium between market exposure for savings opportunities and protection against adverse price movements. 


 

Get started with E&C today

We understand the unique complexities of energy contracts, volatile markets, and sprawling global data. That's why businesses like yours trust us for objective, data-driven energy procurement and management.