Risk Management

Risk is defined as “the effect of uncertainty on objectives, whether positive or negative” (ISO Guide 73: Risk Management – Vocabulary). Traditionally all of the risk in energy markets was borne by the energy supplier who, in turn, embedded risk premiums into their energy prices.

Through deregulation, energy markets now allow companies to choose the amount of energy price risk they are willing to bear – the higher the risk, the lower the energy price. Managing this risk requires more than simply choosing a price and contract term. It requires selecting the appropriate product, reviewing contract language, countless hours of monitoring market conditions, and staying abreast of regulatory changes; in essence, a full-time job. Power Brokers can help you negotiate the potential pitfalls of buying electricity and natural gas and help limit your exposure to risk based on your company’s tolerance levels.

Contact us to learn more about how Power Brokers can help you minimize your risk while maximizing your value when buying electricity and natural gas.