Since 2005, Energi Danmark has supplied electricity to Aller Aqua Danmark via a Fixed Price agreement. Aller Aqua is a large international manufacturing company based in Christiansfeld with more than 40 years of experience producing fish feed for freshwater and marine aquaculture.
As CEO, Carsten Jørgensen is used to performing economic risk assessments and hedging. This is why he prefers to be part of the strategic decisions concerning the electricity consumption of the company.
After consulting Energi Danmark, Carsten Jørgensen has chosen Fixed Price for the busiest periods. This means he knows the price for the electricity needed for the manufacturing in the peak season. “It is always nice to close the agreement well ahead of time so I know how to budget our costs for electricity”, says Carsten Jørgensen
However, the agreement is still so flexible that it can be changed if the market changes. Carsten Jørgensen explains: “It is a very flexible system. Even though we have settled on a certain price for a period, it is possible for me to sell again, if the electricity price has increased.” By doing so, Aller Aqua can obtain economic advantages by monitoring the developments in the electricity price and the recommendations from Energi Danmark.
Off-peak, when the electricity consumption is smaller at Aller Aqua, the company chooses to cover its consumption with Spot Price, meaning a more ‘open’ agreement. In this period, Aller Aqua is more willing to take risks, at the same time keeping the possibilities open for more savings. This way, Carsten Jørgensen can limit the risk to affect only a smaller part of the manufacturing.