Energy Risk Management

Reduce price volatility with proprietary energy price risk management solution.

If your company spends $5m or more on energy procurement in direct-access markets, the business case for energy risk management is compelling. The impact of energy price volatility can be high, so more sophisticated tools are needed for a successful energy procurement strategy.

Managing Energy Price Risk

Energy procurement is different from other spend categories due to the underlying volatility inherent in the commodities. However, while the price of energy commodities such as fuels can be volatile in the short term, they can also follow long cycles meaning that energy prices can remain elevated or depressed for extended periods. As a result, commodity price volatility needs a strategy to manage it in both the short and long term.

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A New Approach To Energy Risk Management

To address this, Vervantis apply energy risk management tools and skills commonly found in banks and energy suppliers to accurately measure and control an organization’s exposure to energy commodity prices using value at risk. Our energy procurement experts negotiate exclusive supply agreements directly with energy vendors allowing organizations to transact dynamically under an expertly managed energy sourcing process.

Energy Risk Management Example

Dynamic transactions alter the percentage of your energy spend that is fixed or unfixed at any point in time, and purchases are in small or large blocks.  This fine-tuning of transactions ensures energy risk management goals are met with a clear understanding of, and a careful watch on, the taken underlying category risk. Risk reports and energy data analysis are available 24/7 through DataHub360™, our proprietary energy management portal.

We developed and pioneered this energy risk management approach to energy procurement, specifically for large energy consumers.  The process is, with absolute certainty, the logical conclusion of how consumers should buy energy commodities (natural gas, electricity, fuel oils, etc.). More importantly, it complies with all accounting or auditor led directives (SOX, Dodd-Frank, IAS39, FAS133, etc.), so as a result, your finance team will be happy too.

To learn more about energy risk management, flexible energy procurement, or value at risk and how it improves procurement decision-making – request our free guide above.

If you are in an area that does not support energy competition, check out the tab below to understand how our regulated energy sourcing solutions can help you.

Want More Information?

No problem. There is more information below, and we have written a guide to energy procurement that explains some of the considerations in managing an energy RFP yourself or if using a third-party, guidance on the different types of support. You can read it here.

Energy procurement is much more complicated than signing a contract and hoping you’ve made the right decision. It takes a lot of research and, even more importantly, an understanding of the energy and utility landscape. For businesses, the way they handle utilities will inevitably influence how much money they spend and how much energy they save — two things that can drastically change your fiscal outlook. To understand the best solution, we carefully consider options from energy suppliers, regulated utilities, and SourceRisk™, our unique dynamic price risk management solution.

Energy consumers with sites in markets or regions with no competitive sourcing can still get cheaper rates. Vervantis has proprietary models which accurately analyze and compare thousands of regulated utility rates against your facilities load profiles, creating savings recommendations in hours.

The need for organizations to access and evaluate energy data on demand has never been greater, especially while sourcing.  Vervantis enables this using its secure cloud-based platform DataHub360™ which allows organizations to view and report on their energy, utility, sustainability, and bill management programs instantly.

Utility bill management automates the collection, payment, and validation of invoices.  The speed and accuracy of payments, exception resolution and open close management from our team of billing experts make late payment fees and disconnections a thing of the past.  A financial-grade utility dataset supports utility management programs and helps accounts payable teams lower administration cost by up to 75%.

“Vervantis manage our energy purchasing, billing, account administration, sustainability reporting and everything in-between. The service is incredible and they always go above and beyond our agreement to help.”

Winnie Buchanan, Director of Facilities

Years Being Used

In Multiple Countries

NA States can Participate

and over 50 countries

Years of Experience

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