Insights
Risk Management Insights
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 >>
Buyer's Credit Risk from a Supplier's Viewpoint
October 2009
Evaluating a buyer's credit risk is an important task for suppliers, and overlooking this type of risk may turn out to be a very costly move - for both the supplier and the buyer. 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 >>
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 >>
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 >>
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 >>
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 >>
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 >>
"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 >>