
“The higher the risk, the greater the reward!”
A famous old adage that can often define our industry when considering the historical performance of the ERCOT index products.
Index pricing has provided very significant savings for those who managed their positions and risks in the market correctly. Simplified Power can help minimize these risks by monitoring the market on a daily basis, suggesting products that match your business risk tolerance and educating Clients on limiting these exposures.
Unfortunately, in Texas there are no licensing requirements for Electricity Brokers which can lead to very risky suggestions by the many Brokers that ‘come and go” without fully understanding the market. With real time settlements in ERCOT performing well during long periods, it can be easy for Sales Representatives to tell a fascinating story without a few important details that could seriously derail your business.
Analyzing risks and understanding product volatility is a prerequisite for assisting customers in some of the higher risk products like index pricing. Simplified Power can provide immediate alternatives to your existing strategies and help you take advantage of the market.
Contact us today for a brief review of our index strategies.