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New guide to help consumers manage spot price risk
The Authority has today released a new guide to help consumers understand and better manage the inherent risks of buying electricity at wholesale spot market prices.
The guide is one of a number of Authority initiatives to strengthen the electricity hedge market by providing greater transparency and more confidence in the electricity forward price curve. Managing electricity price risk: A guide for consumers offers practical information and examples on a range of issues including:
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the different ways of buying electricity |
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spot price volatility |
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how different options affect exposure to spot price risk |
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limiting spot price risk and choosing the appropriate level of exposure |
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stress testing as a tool |
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what principles should govern choices about risk |
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where to get more information or advice on spot price risk issues. |
The guide and a summary sheet are available at:
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