Electricity hedges
Manage the risk of buying power from the wholesale market with a Mercury Energy Swap.
Taking out an electricity hedge - what we call a Mercury Energy Swap - is another one way you can shield your business from unpredictable shifts in the wholesale market price for electricity.
A Mercury Energy Swap is a purely financial instrument, and so it's distinct from the actual physical supply of your electricity.
How it works
- The Swap is based on a pre-determined fixed price – the ‘strike price’ - for a pre-determined fixed volume of energy you expect to use.
- If the average market price of electricity for the month is more than the agreed 'strike price', we'll pay you the difference between the two.
- But if the average market price of electricity over the month is less than the agreed 'strike price', you'll pay us for the difference.
You may also hear 'Mercury Energy Swaps' or hedges referred to as 'Contracts for Difference'.
Chat to one of our experienced Account Management Team about how a Mercury Energy Swap could help your business offset the risk of buying power from the wholesale market.