Industries
Emerging Issues
Gas
Retail
Gas retailers face complexities on both the supply and demand side. They must secure gas supplies through a combination of central, bilateral and secondary markets of varying efficiency and liquidity, while maintaining an acceptable risk profile and term structure in their portfolios. They must also secure customers, often in a highly competitive environment, and seldom on similar contract durations to their own supply arrangements.
The overlay of changes in government policy adds further risk, with the potential to adversely affect commodity and network costs. Governments often see the creation of retail competition as a way of capturing value and short-term revenue, but for the owners of the retail business it can markedly change the risk profile of their operations.
Marchment Hill's consultants have extensive experience in utilities retail strategy, and can bring real strategic insight to help businesses navigate these complexities.
