- Home
- Companies
- CUB (UK) Ltd.
- Services
- Commodity Risk Management/Flexible ...
Commodity Risk Management/Flexible Purchasing
Flexible purchasing, also known as commodity risk management, gives you greater transparency when buying energy. At CUB we believe our expert knowledge and years of experience can make these contracts less of a risk but more of an investment strategy. CUB were one of the first energy management consultants to offer flexible purchasing contracts which demonstrates your business will always be the first to hear of proactive solutions to commodity procurement.
CUB has been negotiating and managing flexible commodity purchasing agreements since 2001 and are therefore well placed to assist with the risk management process.
Why Choose Commodity Risk Management or Flexible Purchasing?
Flexible purchasing or commodity risk management is ideal for medium to large consumers of energy. This product allows you to stay in control of your energy usage by giving you greater transparency when buying energy. It works by allowing you as the customer access to the wholesale market on a daily basis. Based on your portfolio and individual flexible approach, we will arrange a strategy to provide a clear direction on all purchasing decisions.
What is involved with a flexible purchasing contract?
By agreeing a flexible purchasing contract you agree to take supply of gas or electricity from a supplier for a fixed period of time (typically 12, 24 or 36 months), this entails agreeing to be charged for the delivery of energy to your site either by passing the cost directly to you or fixing these costs at the outset of the contract.
You will then be given access to the wholesale electricity or gas market on a daily basis, where you can choose which months you wish to buy (and what volume you wish to purchase). You will then be invoiced based on final wholesale market cost achieved plus the cost of getting energy to your site.
This commodity risk management product can be as flexible and manageable as you need.