Risk management
Spread your risk across multiple purchases prior to, and throughout, the contract.
Flexible Energy Procurement
With a Flexible trading framework, Amber’s Trading & Risk Management team will work with you to secure prices over the life of your contract, aiming to benefit from movements in wholesale energy markets.
What is Flexible Energy Procurement?
Instead of locking into a single fixed price for a set period, Flexible Energy Procurement involves strategically buying energy in smaller chunks over a longer timeframe. Here’s a short video explaining this type of strategy.
What are the pros of flexible purchasing?
Cost
Take advantage of market movements to secure a competitive rate.
Reduce Premiums
Reduce risk premiums, particularly if non-commodity elements are passed through.
Flexibility
A wide range of trading strategies, product options, and other features are available.
What are the cons of flexible purchasing?
Risk
Flexible trading strategies, if managed badly, can lead to higher rates.
Complexity
Typically more complex and need knowledge and visibility of energy markets.
Less budget certainty
As there is no price guaranteed at the start of the process, there is less budget certainty. Depending on strategy, rates may fluctuate and make it harder to predict costs.
How we work
We’re involved throughout the process, ensuring a suitable flexible product is obtained. We will provide support throughout the life of the contract, with proactive market alerts and regular catch-ups to discuss your position.
The customer works with Amber to establish procurement objectives. Amber reviews the options available and will complete a supplier tender process. The customer receives a clear summary with recommendations evaluating the utility suppliers in the marketplace.
Amber will manage the utility contracts, energy trading, and risk management on behalf of the customer. The Trade Desk at Amber will consider the price of energy daily to determine when to buy, in accordance with the customer’s trading strategy.
Amber will check the contract has gone live when transferring from one supplier to another.
Amber will send the customer commodity market updates each month.
The customer will receive a monthly report showing current trading position, future exposure, and live market trends.
Customers have access to call traders to discuss key market drivers, positions, and trading strategies.
Our credentials
Across our Trading and Procurement teams, we have over 60 years of experience in Procurement and Trading, and manage more than £2.5bn worth of energy spend under management.
Our latest insights
News Jul 10, 2024
Fixed vs Flex: Which energy procurement strategy is right for you?
News May 03, 2024
Flexible trading: A guide for businesses
Explainer Aug 20, 2024