Beware of News Reports When Assessing the Forward Market

February 2009

Over the past year we have seen two ends of a market cycle - a bull and a bear. News reports have provided explanations for price behaviour that have run the full gamut. But lessons learned suggest energy buyers should not be carried away by sensationalism in the press, and should not overlook their business objectives. Read more >>

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Why Pay a Consultant for Energy Advice When Suppliers Offer It for Free?

February 2009

In challenging economic times, it can seem counter-intuitive to add to your energy costs by hiring an outside energy consultant. However, leveraging the knowledge of an energy advisor rather than a supplier can be an efficient way to develop cost reduction strategies for your energy supply. Read more >>

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Larger Electricity Consumers Better Off Outside the Regulated Price Plan

January 2009

Larger electricity consumers should be happy they will no longer be eligible for the Regulated Price Plan as of May 1, 2009. Their cost of electricity will come down and their risk will be no higher than if they were still on the RPP. Read more >>

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End of OPG Rebate Is Approaching - How Will Consumers Be Affected?

January 2009

The OPG Rebate is scheduled to end on April 30, 2009. When the rebate ends, consumers will see their net cost of electricity rise as will their exposure to spot market prices. Revisiting hedging strategies will be the order of the day. Read more >>

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Create a Fire Prevention Plan for Energy Buying

January 2009

In mid-2008, many natural gas buyers were in full fire-fighting mode. But the drop in energy prices, and the prospect for soft prices for the next while have created an ideal opportunity for organizations to create a fire prevention plan for energy buying. Read more >>

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Financial Professionals Are Key Players in the Energy Buying Team

November 2008

For some organizations, the large share of operating costs that energy represents, combined with the uncertainty inherent in energy prices, means energy inputs have the potential to add significant uncertainty to profitability. Anything that makes profitability less certain ought to attract the attention of the Chief Financial Officer. Read more >>

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When Is It a Good Time to Hedge?

November 2008

Hedging is a risk management tool that produces a desired outcome with a high degree of predictability. Any time is suitable for risk management. Read more >>

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A Market Timing Strategy Won't Minimize Price

November 2008

"When it drops to $7.00, then I'll lock in." This market timing strategy neither minimizes price nor controls risk. There is a different strategy that works better. Read more >>

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"Lone Wolf" Behaviour - A Risky Move in Energy Buying

October 2008

Following an election that was disappointing for the Liberal Party of Canada, Mr. Dion is being criticized for acting as a "lone wolf" in deciding his party's policy theme for the election against the advice of his caucus and policy experts. The stakes were high, and the gambit failed. Lone wolf energy buying behaviour also carries high stakes. Read more >>

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Develop a "SMART" Goal for Your Energy Procurement Plan

October 2008

Commodity markets tend to bring out the competitive nature in people. Everyone wants to "beat" the market and the rush of doing so can be addictive, more addictive than the pain of losing to the market. But when a speculative position is taken the likelihood of either outcome is about the same. Developing a "SMART" goal is a critical first step in an energy procurement plan. Read more >>

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