Defending Budgets

Energy markets are volatile.  You can take advantage of this by carefully timing your purchasing decisions and by considering a flexible purchasing contract.

In either case you still need to have budgetary certainty – you need to know what your financial exposure is and you need a strategy to defend your budget.

At LCA we help you to set clear targets for each period.  If the market moves outside an agreed range there is a clear strategy in place to protect your position.  In a falling market we lower the range so that you effectively ‘bank’ the difference; in a rising market we can either make a purchase, or ‘hedge’ your position against other periods.

Because of our strict ‘stop loss’ policy your final budget will always come in at, or more usually considerably below, your agreed position.