Energy suppliers must obtain lines of credit to cover positions taken on your company’s behalf in the forward market. These positions carry significant risk, as electricity and natural gas are among the most volatile traded commodities in the global economy.
Suppliers are increasingly requiring customers, even those with good credit, to shoulder this credit burden through more stringent performance assurance provisions and collateral requirements. Satisfying the credit demands of an energy supplier can significantly complicate the already complex process of energy procurement. The path to a favorable credit agreement involves overcoming hurdles like commercially unreasonable terms, time delays, lost opportunities and significant exposure to collateral costs.
The experience of our energy professionals can transform credit-term negotiations from a roadblock to an opportunity. As an energy consulting firm with a deep global expertise in contract credit requirements, Summit Energy can steer your company through the credit negotiation process to arrive at fair, favorable terms for the life of the deal. In particular, we:
- Evaluate the merit of collateral requests, recommend an appropriate path forward and negotiate accordingly
- Control costs by negotiating reduced deposits, letters of credit and prepayments
- Leverage our extensive supplier base to gain increased options
- Explore credit alternatives to best match your needs to the requirements of the supplier community
Contact us today to secure more favorable credit agreements.
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