Risk Management

Profit from a changing landscape: we develop and deliver world class strategies to manage risk, optimise utility supply and reduce costs.

Our consulting approach enables clients to make the right decisions at the right time, minimising risks in the planning, procurement and management of business electricity, gas & water while profiting from market opportunities – to a five-year horizon if required.

Balancing Risk with Reward

From designing long-term purchasing & risk strategies and managing risk end-to-end to providing light-touch ad hoc support, our market insights, combined with many years’ experience, means we can confidently take a position and provide informed advice at all times: whatever the scale of a client’s operations or its requirements. Whether understanding the bigger picture or dealing with highly specific client risk profiles and capitalising on fast-moving market developments, we are proven.

Market and Risk Analytics

We track energy and utility markets in real time, analysing Market Trends & Activity to identify opportunities and threats. This analytical insight and risk intelligence underpins effective purchasing and procurement strategies: what to buy and when, and when not to buy. Global risk intelligence drawn from multiple sources is sifted and assessed hour-by-hour by our in-house specialists. This enables our clients to understand a changing risk landscape and its cost implications, covering both Price Risk in fluctuating markets and Legislative Risk covering third party costs and regulatory requirements.

Budget / Forecasting

A fully delivered energy cost is made up of several components, however, these can be generically referred to as ‘energy costs’ and ‘third party costs’. Third-Party cost forecasts are updated regularly based on the latest market information, and given that wholesale energy markets trade up to four-years into the future, it can be relatively simple to measure a company’s future energy position on a daily basis. Utilising this methodology The Consultus International Group work with clients to create budget costs which best fit their commercial objectives. Married with daily financial reporting and robust risk controls, the Group’s consultative approach ensures that extremes of cost exposure can be identified and managed.

Purchasing Strategy

When to buy and when not to buy: our consulting approach means we can confidently advise in-house purchasing and operations teams, helping to define and deliver the most effective energy and utilities buying strategies for a business and its changing requirements. This can range from advising on the moment of purchase for fixed procurement and ensuring all contracts are accepted and countersigned at the right time, to strategic and tactical flex buying as part of a wider approach to utility management and costs. Our experts proactively track wholesale markets to advise on the right time to purchase different aspects of utility requirements, profiting from beneficial changes while minimising risk.

Legislative Risk

Being well-informed is the first step towards making the best energy management decisions to optimise business performance and success. Today’s energy markets are transitioning at a rapid pace. Faced with high levels of uncertainty and volatility makes the Energy Industry highly susceptible to changes in legislation and regulatory risk across borders. Industry parties such as Suppliers, Generators, Transporter and Shippers must contend with many ongoing legislative issues related to wholesale energy costs and the complexities associated with third-party charges. Third-party charges, also known as non-commodity costs or pass through charges, constitute a growing proportion of business energy costs. We regularly conduct deep dive analyses and deconstruct intelligence to track, investigate, evaluate and monitor likely risks, impacts and influences of all industry led change proposals, code modifications on client business energy costs and energy market factors. Our bespoke intelligence and technical bulletins enable clients to keep abreast of changes to charging methodologies, industry code, policies, regulation and legislation.

Related News & Insights