Strategy Development

With a thorough understanding of our clients' busines practices, risk exposures and risk tolerances, DaCott then develops a supply strategy that reflects these requirements. Strategies incorporate all of the information gleaned in the first two phases to ensure a proper fit for the client:

• While price is often stated as the major objective, in practice we find that most of our clients are willing to sacrifice the absolute lowest price in return for a stable, risk adjusted price that allows for more consistent planning and budgeting

• Strategies can be back tested against historical data to ensure that objectives are being met
  
  

Components of the strategy include:

Consumption Modeling

• Ensure that the strategy reflects anticipated consumption, especially when the anticipated consumption deviates from historical norms

Hedging Tools

• In today's market, there are numerous tools available to hedge against volatile energy costs
• The judicious use of these tools can lead to a more stable energy cost profile

Pricing Options

• Based on a client's risk tolerance, numerous pricing options exist to meet a client's objectives

On-Going Review

• Conditions change, and as a result strategies need to be constantly evaluated to ensure that the client's objectives continue to be met
• Changes in strategy need to be clearly evaluated

A properly designed and implemented strategy leads to a more consistent energy spend, allowing for more efficient budgeting and planning.