In this article we are going to explore five key factors, which will help you to assess if a bespoke strategy would suit your organisation’s needs.
The world of energy is changing, growing ever more complex. With that evolution comes risks and opportunities for organisations that can adapt. Key to this is an awareness of your position right now, and where you are heading in the years to come. One element you should regularly review is your energy purchasing strategy to ensure it is fit for purpose and future-proofed. Depending on your portfolio, a bespoke solution – made just for you – might be suitable.
Here are five key factors that will help you assess if a bespoke strategy would suit your organisation’s needs.
Perhaps a PPA (Power Purchase Agreement) is on the horizon, or maybe a project to install heat pumps & EV charging points? If net zero plans make your electricity and gas portfolios more complex, one way to manage this effectively is via a bespoke basket solution. Going bespoke provides more flexibility in adapting to those short, medium and long-term changes as our structured bespoke service allows you to adjust course. Regular strategy and governance meetings provide ample opportunity to review the approach. If your plans changed, so can the strategy.
Whether large alterations are planned for your portfolio or not, a bespoke solution provides a greater level of control. This involves transparency: bespoke means more involvement, more visibility, and a greater ability to protect from volatility. We can even set prices, decided by you, that determine when we close out the open volume. Our bespoke offer also provides a tailored approach, so that you can pick how much you control, and how much we help in the critical areas of strategy delivery. We are the experts; it’s your solution.
Our baskets perform strongly against the markets and have done so for nearly two decades. But as energy bills continue to rise, we recognise the pressure you face to find even marginal gains to reduce costs. A bespoke solution can help by providing more strategy flexibility, plus the ability to create a tailored, blended strategy using different elements from our most popular baskets (Purchase in Advance (PIA), Purchase within Period (PWP) and Signal). Your personal strategy can adopt the parts of PIA, PWP and Signal you want – and this will be detailed in the risk policy document. If your organisation’s view of risk shifts over time, a bespoke solution allows your strategy to adapt alongside this change.
With larger service costs, a bespoke solution attracts higher fees than our regular basket offers. This additional expenditure is often offset by the savings and control on offer, but this isn’t guaranteed. It’s also important to note the time cost to you: governance, strategy meetings, volume reviews. These elements provide you with greater control and transparency, but will also require continuing dedicated resources from you.
Firstly, bespoke baskets are not available for small usage portfolios. This is because in a bespoke solution, you would have very little capacity to trade flexibly versus remaining in our regular baskets, where customer volumes are combined. We require a minimum volume of 7.500,000kWh for electricity, and 10,000,000kWh for gas. Secondly, even if your usage is big enough, volumes can remain a factor. A large, aggregated basket has greater buying power (more trades to get to 100%) and a smoother profile shape (the usage pattern of all the meters). If all your volume is at one site and fluctuates a lot, this could be an issue in a standalone basket. Knowing your profile shape and the potential risks around it is key when considering a bespoke solution.
Then a bespoke basket solution could be the right choice for you.
If you’re interested in discussing this in more detail, please contact our team.
If you are a current LASER customer, please reach out to your Account Manager or Customer Service Lead and they will arrange an initial call to discuss suitability and the options available.
The world of energy is changing, growing ever more complex. With that evolution comes risks and opportunities for organisations that can adapt. In this article we explore five key factors that will help you assess if a bespoke strategy would suit your organisation’s needs.
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