Overview – What you need to know
UK Businesses now rank energy as posing a greater risk to them than Health & Safety, Credit and Security.
No matter the size of your business managing risk is fundamental to your energy strategy.
Our approach to risk management focuses on identifying and protecting you from the threats posed by the energy marketplace whilst delivering a clear approach in order to mitigate them for you.
We take care to determine the balance between risk and opportunity. In order to do so EMW works closely with you to discuss your objectives, concerns, attitude, current position and preferred approach to the process. Identifying your risk profile and current techniques.
We then build a risk management and purchasing strategy so you are clear about the principles and actions regarding your decisions. These include:
|Contract (Price & Terms)|
|Operational Risk Management|
|Basis Risk (Imperfect purchasing, calendar and product quality)|
As part of this process we create a policy that matches your business objectives to your risk profile. Included within this are controls that we put in place for monitoring and reporting, alongside levels of authority and risk limits.
This is where we look to mitigate the risk for the term of the supply contract including price volatility of energy sources. It is a budgetary, insight and financial tool and not a contract for the procurement of an energy source. Our supply contract procurement service runs adjacent to this.
This is where we will ensure to mitigate the risk of the failure of systems, products or processes required to meet the business energy needs of your organisation.
We also define operational risk as potential failure to meet requirements established by regulatory bodies or voluntary practices. Please see our compliance section for further areas we review here.
Applying the theories in finance, this is the price difference between the price of an energy commodity in one market sector and the price of an energy commodity in a different market sector. In the energy industry these sectors are generation – wholesale – supplier – customer. If the striking of the price isn’t executed correctly it is classed as imperfect hedging. If this is done, for example, between customer and supplier it could add thousands to your bottom line costs.
We consider a product or quality basis risk as the risk that you encounter when you decide on a product that isn't the same product or quality as the product that you are seeking to obtain.
We consider calendar basis risk as the risk that arises from deciding on a supply contract that expires on the same date as the potential underlying exposure.
EMW recognises the value in our client’s business reputation. A strong reputation generates stakeholder trust (from potential new clients, existing clients, investors, communities…). They will be more likely to support your position in regulatory matters and be more receptive to change. The goodwill generated from trust can serve as reputational protection should a major incident occur.
We also know that a good reputation does not replace sound operations and reliable services. We consider them to be linked.
The opportunities around ‘going green’ for example can give you a real boost to your reputation (and income). Some strategies are extremely simple indeed without capital outlay. We will also provide you with tools to implement energy into your corporate social responsibility and environmental policies.
Areas in which EMW can help and advise you are:-
ESOS (Energy Savings Opportunity Scheme)
CCA (Climate Change Agreement)
CRC Energy Efficiency Scheme (Carbon Reduction Commitment)
EU ETS (European Union Emissions Trading Scheme)
Mandatory Carbon Reporting for UK Listed Companies
Energy Efficiency Scheme Compliance
EPBD (Energy Performance of Buildings Directive)
GDA (Green Deal Assessment – Non-Domestic)
Climate Change Levy
Minimum Energy Performance Standards (Landlords)
For more information please visit the Green Energy page
Energy Efficiency Support
Energy Policy Development
Staff Awareness Training
Corporate Social Responsibility and Carbon Reporting
Comprehensive Renewable s Feasibility Study