Risk in the price of electricity and natural gas. How to avoid it?

As a rule, the greater the price volatility in the market and the longer the validity period of the offer, the greater the valuation of the associated risk. By shortening the period of validity of the offer to one hour, we can reduce the energy price by up to 3-5%.

In the last quarter of 2021, entrepreneurs contract energy for next year at prices exceeding PLN 500 / MWh. For many companies, this means even a twofold increase in the account y / y.

With such high volatility of prices, the risk of contracting energy on the wholesale market has significantly increased (where sellers buy energy for resale to end users). This risk is transferred to entrepreneurs in the price of energy, which increases it by approx. 3-5%.

A way to protect your company is to receive an offer from the seller with the shortest possible validity period, even one or two hours. For such short periods, most sellers do not add the risk of volatility to the price. Therefore, it pays to make decisions quickly, of course after prior verification of the competitiveness of the offers submitted by sellers.