About cooperation with the Klose Group, a manufacturer of wooden furniture

How to increase the level of financial security of the company during the energy crisis? How to effectively buy electricity in the era of galloping prices? After all, how to use solutions that optimize the cost of energy purchase? We are looking for answers to these questions by describing our cooperation with the manufacturer of wooden furniture, the Klose Group.

- The increase in electricity purchase prices had a significant impact on the cost of furniture production - says Marek Szpręga, CFO of the Klose Group. And he continues: A year ago, market energy prices were at the level of PLN 400 / MWh. Unfortunately, the current rates, which have long exceeded the level of PLN 1000 / MWh, devastate the finances of many companies. Every day we receive information about the financial problems of other companies, including many from the furniture industry. In order to deal with the growing crisis, I decided to cooperate with Arek Somnicki and Adam Wlizło. The gentlemen from Enfree developed an energy purchase strategy for the Klose Group for the next two years.

The Klose Group is a manufacturer of wooden furniture. From the beginning of its existence, it has been building its position on the market, increasing its capital based on the best traditions of Polish furniture, openness to the needs of users and rigorous enforcement of the highest quality principles. This is also the approach to financial matters in the Group - key managers are open to unconventional solutions that optimize costs incurred by the company, among which the cost of purchasing electricity plays a key role. Energy allows for the implementation of technological processes in three production plants of the Klose Group: in Czersk, in Nowe nad Wisłą and in Gościcin. During the year, these plants consume about 10 GWh of energy.

- A year ago, our electricity bills did not exceed PLN 0.5 million per month - says Marek Szpręga. If I wanted to contract energy for 2023 at current prices, our bills would more than triple. This is an unprecedented situation in the company's history. We all ask ourselves when is the best time to buy energy, but nobody really knows. It all depends on the development of the geopolitical situation. Regardless of the situation, it is worth having a well-thought-out purchase strategy and action plan depending on what we will be dealing with in the future. This is what I used the Enfree services for. Using the knowledge passed on to me in the field of products available on the energy market, price-shaping mechanisms or the possibility of optimizing the company's energy management is already bringing tangible benefits.

- When developing the Electricity Purchase Strategy, we first analyzed the current contracting conditions of the company - says Arkadiusz Somnicki from Enfree. The purpose of this analysis was to verify the possibilities of optimizing energy purchases with the use of the energy price indexation mechanism. In practice, we were looking for answers to the question of the possibilities and potential consequences of changing the price formation method: what and under what conditions is more profitable for the Klose Group - purchasing the entire volume based on the SPOT market prices or - taking advantage of the option to purchase part of the volume based on futures market prices. Each of these solutions has its advantages and disadvantages, gives opportunities, but also carries threats.

- When developing the strategy for the Klose Group - adds Adam Wlizło from Enfree - we took into account all the factors influencing prices in the long and short term, we applied them to the current situation on the energy market, and then to the existing contracting situation in the Klose Group. The conducted analysis allowed us to present recommendations not only in the area of ​​pricing, but also to propose additional actions that the company can take to generate savings.

- I wanted to increase the level of financial security of the company by getting to know and using the tools available on the energy market - says Marek Szpręga. I am glad that I trusted the experts from Enfree, thanks to whom, after a month from the start of cooperation, I obtained additional income from the DSR service offered to us. The solution turned out to be very easy to use, its implementation did not require any capital commitment from us, and it generates additional income.

- What do I value our cooperation for? - summarizes Marek Szpręga. First of all, for the real support I received from Enfree and for the fact that the solutions proposed to us turned out to be profitable for my company. Our conversations provided me with the knowledge that I use to face the challenges of the energy crisis. What's next? I wish the Klose Group, but also every company that deals with the topic of price increases in making good and well-thought-out purchasing decisions. Enriched by colleagues from Enfree with a large dose of knowledge in the field of energy trading, I believe that mine will be just that.