Stabilizing Energy Earnings Through Electricity Procurement Price Forecasting and Risk Hedging
First written in FY2019. 3 of 8 entries say "Advanced", first in FY2021-Q1. Latest entry: FY2022.
The whole theme swung hardest in 2022: 2 of 10 companies on the "Worse" side.
1 other company's latest entry also says "Dropped".
- FY2022DroppedAnnual report
「The Company suspended new bids from August 2021 and worked to contain its risk exposure. To establish an agile and flexible management structure, it also carried out a corporate split effective 1 December 2021, with the Company as the splitting company and ホープエナジー as the successor company, while carefully considering business continuity and implementing measures to maintain operations.」
The policy of maintaining operations through electricity procurement price forecasts and risk hedging ultimately changed to suspending new bids and withdrawing from the energy business, bringing the previous measures to an end. - FY2022-Q2RestatedAnnual report
「The Company will continue to operate the energy business exclusively through ホープエナジー and reduce future electricity supply volumes, including by continuing to suspend bids, in order to prevent further increases in risks related to power procurement.」
The Company continues its risk-mitigation policy of reducing electricity supply volumes, suspending bids for local-government tenders and operating the business exclusively through ホープエナジー. - FY2021SoftenedAnnual report
「The Company has adopted a policy of reducing future electricity supply volumes. Under this policy, it will not submit bids for local-government electricity supply-and-demand tenders in the electricity retail business until it can clearly determine that marketability risk will not have a material impact on the Group's management base.」
The Company shifted from hedging risk through a combination of conventional procurement methods to a policy focused on limiting the scale of the business, including reducing electricity supply volumes and suspending bids for local-government tenders. - FY2021-Q3AdvancedAnnual report
「In light of the recent surge in market prices, the Company will formulate a new risk management policy to reduce the risk of market price fluctuations, including by adjusting procurement volumes by area and season between purchases from the Japan Electric Power Exchange and individual bilateral transactions.」
The policy of combining fixed-price procurement with JEPX procurement has been made more concrete as a new risk management policy that includes adjusting procurement volumes by area and season. - FY2021-Q2AdvancedAnnual report
「In light of the recent surge in market prices, the Company will formulate a new risk management policy to reduce the risk of market price fluctuations, including by adjusting procurement volumes by area and season between purchases from the Japan Electric Power Exchange and individual bilateral transactions.」
In addition to the existing combination of fixed-price procurement and wholesale-market procurement, the Company states that it will formulate a new risk management policy involving adjustments to procurement volumes by area and season. - FY2021-Q1AdvancedAnnual report
「As a medium- to long-term strategy, against the backdrop of the national policy objective of promoting the spread of clean energy, one of the SDGs, the Company will seek to create additional value by supplying local governments with electricity generated from renewable energy, while working to refine its electricity procurement price forecasts.」
While continuing its existing policy on electricity procurement price forecasts and risk hedging, the Company has made the supply of renewable-energy-derived electricity to local governments and more precise procurement price forecasts concrete elements of its medium- to long-term strategy. - FY2020RestatedAnnual report
「To achieve this, over the short to medium term, we consider refining forecasts of electricity procurement prices and implementing risk-hedging plans capable of responding to fluctuations in electricity market prices to be key priorities.」
The Company continues to pursue more precise electricity procurement price forecasts and hedging against market price fluctuations as measures to stabilise the profitability of the energy business. - FY2019First statedAnnual report
「To achieve this, we consider refining forecasts of electricity procurement prices and implementing risk-hedging plans capable of responding to fluctuations in electricity market prices to be key priorities.」
Positioning the energy business as a growth engine, the Company has for the first time explicitly identified more precise procurement price forecasts and hedging against market price fluctuations as means of stabilising earnings.