Hydroption has developed a range of innovative solutions that enable electricity consumers to protect themselves against rising market prices by guaranteeing them a fixed purchase price.
The end of regulated tariffs forces electricity consumers – now subject to market prices – to protect themselves against a possible price increase. Hydroption offers them guarantees guaranteeing them a fixed purchase price guaranteed for the coming financial year, while keeping the possibility of benefiting from a reduction if it occurs.
Toulon, April 13, 2015.
Fixed price guarantees, which have long been used to hedge risks in sectors such as cereals or air transport, are now applicable in the electricity sector. The democratization of these tools now allows electricity consumers to protect themselves against a possible price increase and to buy their consumption at a guaranteed maximum price.
Hydroption offers electricity consumers subject to a market price a solution to guarantee a fixed purchase price to protect them from a possible price increase while still being able to benefit from a decrease.
These guarantees are financial management tools that work like an insurance policy. If the producer chooses to operate his guarantee, Hydroption will pay him the difference between the market price at the end of the guarantee and the guaranteed fixed price on the day the contract is signed.
Thanks to a mandate system, the consumer is not obliged to commit immediately. It may set a target price lower than the market from which it wishes to set up its guarantee. Hydroption then monitors the market for itself and when this price is reached, the guarantee is put in place.
In summary :
- Before purchasing physical electricity, consumers can secure a maximum purchase price with Hydroption products.
- If the market is on the rise, the guaranteed price ensures the consumer a maximum price (thus avoiding an increase in expenses).
- If the market is on a downward trend, the consumer can buy his electricity at a lower price and resell his guarantee to Hydroption (thus minimizing his energy expenses).
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