18.11.2021

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

Tags

Author

Arkadiusz Somnicki

Member of Board

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.

See also

More news

01.04.2025

Energy shake-ups: declines, records and new directions of change

In this article, we look at the most important events and data from the first quarter of 2025 that could significantly impact the future of energy.

Read more

05.03.2025

Poland, Germany and the Baltic States: Key Energy Decisions in Europe

How do these changes shape the future of the region? Let's look at the most important current events changing the face of the European electricity and natural gas market.

Read more

03.02.2025

Gas Geopolitics: The End of Transit Through Ukraine and a New Role for the US

In the face of these changes, American gas is increasingly finding its way to the Old Continent, changing the balance of power in global energy. Is this the beginning of a new era of raw material supplies?

Read more