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Energy Procurement II: Introduction to Hedging in Deregulated Markets
Unprecedented volatility in today’s energy markets
has wreaked havoc on the profit margins and bottom lines of many industrial
companies. In order to successfully
manage costs in this market, it is critical to apply commodity-based market
purchasing strategies—or as it is commonly known in the industry:
“hedging”. Energy price risk management and hedging programs quantify
exposure to adverse events and mitigate the impact of those events on financial
results. An on-going Energy Risk Management program can provide for more
predictable budgeting and insulate future earnings from the unpredictable
effects of volatile energy prices. The purpose of this course is to address the
hedging process. We will also cover the spot and forward markets as well as
fixed and index linked contracts.
Topic :
Buying energy
