Load Following Product
A load following product is the simplest form of hedging. Pick the percentage of consumption you want to hedge and Bruce Power Direct will manage the rest. If your load pattern is highly variable or you do not know what your load pattern is, a load following product is the right product for you.
With a load following product all you pay is your contract price for all your hedged volume.
With Bruce Power Direct’s load following product, you can choose the percentage of your consumption you want to hedge. This unique feature allows you to choose any amount from 25% to 100%. Most of our competitors only offer a 100% hedge, which might not be what you need.
1 – 2 – 3 It’s that easy to reduce your risk with Bruce Power Direct
How Does it Work?
- With your permission, Bruce Power Direct will download your consumption history from your
- Our team of pricing analysts will calculate a customized price for you based on your consumption pattern and our knowledge of market prices.
- You pick a hedge percentage.
How do I know what hedge percentage to choose?
This depends on your level of risk tolerance. If you are the type of company who always obeys the speed limits you should pick a high hedge percentage. If you are the type to invest in risky cutting edge software companies, you will want to pick a lower hedge percentage.
In the current market environment with prices slowly recovering from the recession and price increases on the horizon, we recommend at least a 75% hedge percentage to take advantage of the situation.
I don’t like the idea of hedging all my consumption at the same time. What can I do about this?
By giving you the ability to pick a hedge percentage, Bruce Power Direct gives you the ability to “layer in hedges.” You can purchase a three year, 25% hedge this year, and then “layer in” another 25%, three year hedge next year. This eliminates the risk of purchasing a large volume of your consumption during a short term price spike as you are always purchasing a relatively small amount of volume. This gives you a very stable long term average price.
Complicated hedging strategies like this are one of the benefits of purchasing directly from the generator. The generators backing Bruce Power Direct have a 30 year life — we are going to be here for a long time and our goal is to keep you as a customer. Because we take a longer outlook we are not in a rush to sell you a 100% hedge this year.
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