Managing risk and the increasing volatile energy market was the hot topic at the inaugural Energy Show in Coventry today. Energy buyers from the private and public sectors told ELN the increasing risk from spikes in oil prices had made the energy market increasingly unstable prompting a change in thinking moving away from just price, but also looking at efficiency and risk.
Graham Wray, Associate Director for Corporate at the Health Trust Europe, who procures energy for the NHS said: “buying energy fluctuates too much and it’s hard to show savings so we have started to focus on consumption and energy saving.”
David Medori, a procurement specialist with the Home Retail Group agreed that price was important but implementing measures to cope with increased market volatility was also key: “The main impetus is cost control and achieving the lowest cost possible- the main way we do that is our contracts with our suppliers. It’s the policy and hedging that gets a good price.
He added: “Having a good risk management policy is important. Set it up, get good buying and then implement it – If you do it well you should be able to achieve a good price. The whole energy landscape and pricing is changing- it’s very fluid and dynamic – it’s about making decisions that don’t leave us open to volatility.”