Insights
Price management Insights
How Does Having a Portfolio of Suppliers Save Money?
August 2010
Attempting to reduce energy costs by buying at the "bottom of the market" cannot guarantee consistent savings against market prices. However, having a portfolio of suppliers can guarantee that a buyer will receive competitive pricing and in many cases, demonstrated savings. Read more >>
Buying to Control Price Risk
May 2010
Decisions about locking in energy prices should not be driven by whether the market price is high or low, but whether the price risk is too high. Trying to save money by locking in at the bottom can cost money. Read more >>
5 Simple Steps to Effective Energy Buying
April 2010
Energy markets are hybrids of volatile commodity markets and complex regulated utility services. But there are five simple steps energy buyers can take to reduce costs and manage risk in energy procurement. Read more >>
You're Approaching an Electricity Cost Iceberg - What Should You Do?
April 2010
Over the next 18 to 24 months, the cost of electricity in Ontario is set to rise rapidly. As the electricity cost iceberg approaches, it is essential that consumers understand the hazards so they can navigate safely. Read more >>
Beware the Electricity Cost Iceberg
March 2010
The Ontario Government's recently announced green levy of $4/year is only a small part of the total increase that typical residential consumers will see on their electricity bills by the end of 2011. It is just the tip of an approaching iceberg. Read more >>
How Energy Buyers Can Better Enjoy Their Vacation
May 2009
For energy buyers, it can be a stressful return from summer vacation to find that an increase in prices has dashed all chances of meeting the natural gas budget. Before leaving the office for a well deserved holiday, it's worthwhile for energy buyers to add a review of their company's energy hedges and risk profile to their to-do list. Read more >>
Coal Phase-Out: Its Impact on the Global Adjustment
April 2009
Natural gas-fired generation plants have the same attributes as coal-fired generation facilities and so will be counted on by the Ontario Power Authority to replace coal. The estimated impact of almost 6,500 MW of natural gas-fired generation replacing an equivalent amount fo coal-fired is an increase of approximately $6/MWh in the Global Adjustment. This is in addition to the effect of the phase-out on spot market prices. Read more >>
Do Price Spikes Really Affect Electricity Consumers?
March 2009
On Februart 18, 2009 Bruce Power had to take one of its generators offline, creating a supply/demand imbalance for a three-hour period. Over this period, prices averaged $1,030/Mwh with the peak being $1,891. Such spikes can often cause alarm but unless sustained, the impact is not as severe as one would expect. Read more >>
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 >>
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 >>