Energy Risks and ManufacturingManufacturers make decisions to increase or decrease production based on fixed and variable costs. One variable cost to be considered is natural gas. Given that the price of natural gas fluctuates substantially, it often complicates the decision making process. Using budget, historical, or even spot market prices as an indicator of the price for natural gas can distort variable costs in a production increase/decrease decision. Beyond price, transportation and distribution rates, natural gas imbalances and ongoing operational management all influence the overall cost of energy. A more structured approach to managing energy costs can better enable the company to manage the variable cost of production. Establishing an energy procurement plan with Aegent Energy will ensure that your organization can focus on manufacturing your product rather than managing your energy supply. To learn more about how Aegent can help, call us at (416) 622-9449.
|
Insights
Greenfield Ethanol works with Aegent to reduce their gas costsAegent’s expertise helped GreenField Ethanol renovate its supply portfolio and transportation and distribution contracts. The result was a more competitive supply mix, greater operational flexibility, and significant cost savings. Aegent has produced a case study outlining our work completed with Greenfield Ethanol » Subscribe to Aegent Energy Update
|
