Managing spot price risk

New guide to help consumers manage spot price risk


The Electricity Authority has released a new guide to help consumers understand and better manage the inherent risks of buying electricity at wholesale spot market prices.

Managing electricity price risk: A guide for consumers offers practical information and examples on a range of issues including:

·         the different ways of buying electricity

·         spot price volatility

·         how different options affect exposure to spot price risk

·         limiting spot price risk and choosing the appropriate level of exposure

·         stress testing as a tool

·         what principles should govern choices about risk

·         where to get more information or advice on spot price risk issues.

The guide and a summary sheet are available at: www.ea.govt.nz/consumer/guides

 

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