The electricity market is fluctuating faster, more significantly, and more frequently. For a business, this means more unpredictable energy costs. With price hedging, companies can lock in prices for all or part of their future electricity consumption. This provides cost control and makes planning easier.

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What does it mean to hedge electricity?

Hedging means agreeing on a price for a portion of your electricity consumption in advance. This portion is set at a fixed price, while the rest of your consumption follows the market price.

This gives you a combination of predictability, security, and flexibility. When you choose a market price, or what we call spot price, you pay the cost of electricity on the exchange at the exact hour you use it. This means your electricity bill changes in line with market prices.

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How much should your business hedge?

Businesses have different needs. That is why a good hedging strategy starts with your company and your specific electricity consumption. We look at factors such as usage, requirements, your location, your desired level of predictability, and seasonal variations. Together, we can then determine how much it makes sense to hedge and how far into the future it is appropriate to do so. You get a customized solution based on how you actually use electricity.

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Predictability and complete overview

When a portion of the cost is agreed upon in advance, you know exactly what that part of your electricity will cost. This makes it easier to plan liquidity and budgets.

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Simple energy management with experienced advisors

Our goal at Noova is to make energy simple. We have extensive experience in the power market and in helping businesses with electricity and price hedging.

You don't need to become an expert on the power market yourself. We explain the options in a way that is easy to understand, and we help you evaluate what is right for your business.

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You run the business. We’ll take care of the energy.

Want to know what might be right for your business? Get in touch with us for a no-obligation chat.

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