Energy Trading, Markets and Risk Management

brewery-377023_640Energy trading is critical to the successful functioning of the new, open energy markets. It is, however, becoming significantly more complex as a consequence of its international perspective, the growth in multi-commodities and the addition of weather and environmental aspects. This must also be viewed in the light of the increasing convergence in electricity, gas and carbon emissions markets, the growth of the LNG market, and other developments leading to possibilities of arbitrage.

There is, however, no way to ignore the fact that energy trading remains a risky business. As the global energy markets continue to evolve, companies are coming under increasing pressure for cost reduction and return on investment. Organisations are now increasingly focused on optimising their core businesses and implementing appropriate trading controls, systems and risk measurement to compete in markets characterised by varying liquidity and increased price volatility.

Consensia has proven expertise in providing specialist advice and support to energy buyers, sellers, international traders and markets based on a sound knowledge of trading needs, current and prospective markets and necessary risk management strategies. Our services include assistance with:

  • Competitor, Market and Sector analysis
  • Regulatory advice
  • Trading & Risk Management software evaluation
  • TRM Project scoping & systems advice
  • TRM Project implementation and management
  • Forecasting and scenarios
  • Exchange Markets and Gas Hubs
  • Emissions and carbon trading advice
  • Specialist training courses

Energy Trading has changed. It is no longer just a physical market requiring the movement of product from production source to end-user across grids, pipelines and local distribution systems. Increasingly, the physical is now fundamentally combined with the use of financial an dother market tools, such as swaps and options, and critically with increased understanding and implementation of the critical areas of enterprise risk management and hedging. Successful trading organisations today are those that have a well thought out strategy that is consistent with the achievement of their overall goals, and evaluate these on a regular basis to ensure they have adequate policies, procedures, information flows and updated IT systems in place within the organisation to support these goals.