Gas

Gas

In the area of gas distribution, Lumius is focused on customers in the large take-off and medium take-off categories, i.e. customers with minimum consumption of 630 MWh worth of gas per year. We put emphasis on solving specific needs of our customers and help them define the optimal way to purchase individual commodities – different variants of step-by-step purchasing or a fixed price.

 

FIX

When purchasing gas based on the FIX product, the price is set regarding the take-off characteristics of the customer and proportional to prices on the gas market at the given time.

The benefit of this product is how simple it is to set a price, especially its fixed value for the entire related time period. This way, it is easier for the customer to predict their gas delivery costs in future periods. The disadvantage of this product is the necessity to decide for the purchase at the given time and the related incapability to react to potential price drops in the future.

 

STEP-BY-STEP PURCHASE

The Step-by-Step purchase allows spreading the risk of choosing an inappropriate time of purchasing gas. This means that the price of the gas is not set at one time, but instead determined in several purchase steps – so-called tranches, which are always related to the selected referential market (power stock-exchange). When employing this method of purchase, Lumius assumes the role of expert counsel to advice customers on an optimal purchase strategy, as well as terms of individual purchases. However, the final decision is always with the consumer. By a suitable combination of power products and times of purchase, lower average prices for gas delivery can be achieved compared to the Fic product.

With the Step-by-Step product, the customer has more control of the resulting price for gas delivery, along with the opportunity of flexible responses to variances on the industrial gas market. The disadvantages of this product are increased demands put on the purchase process and more difficult predictions of the actual gas delivery costs for the period which are not yet fully purchased for.

 

SPOT

The SPOT product allows the customer to purchase gas at conditions accurately reflecting a situation on market. The gas is purchased on a daily market with each day of the take-off appraised separately according to the price on the daily gas market. The delivery price is subsequently calculated as a weighted average of the prices for all days in the month, where the weight is represented by the actual consumption during individual days of the delivery month.

The Spot product provides the customer with a price that accurately corresponds with the current status on the gas market at the time the gas is taken off. This fact can be understood both as a benefit and a disadvantage – therefore, it is necessary to expect the price to be more volatile during individual hours and periods. Moreover, there are increased demands put on the customer when arranging a diagram for delivery.

 

Do you want to find the optimal way to purchase gas for your company?

Contact us!