Risk management
We work with Europe's largest energy exchange.
TTR Energía develops hedging strategies that fix the purchase or sale price of energy, executing them through energy SWAP agreements. Our aim is to maximise our clients' returns and reduce their exposure to volatility in energy markets.
Through our partners, we design the most suitable structures for competitive, secure hedging of the sale or purchase price of energy assets.
At TTR Energía we provide representation services to electricity market producers, strengthening their bargaining position with market agents.
Energy markets are highly volatile and shift according to many variables: weather, seasonality, the availability of generation technologies, the price of CO2, coal, oil and natural gas, and the EUR/USD rate, among others.
To counter this volatility, an added business risk for producers and suppliers alike, TTR Energía develops hedging strategies for its clients that fix the purchase or sale price of energy over a given period.
These strategies take the form of an energy SWAP contract.
Energy SWAPs can be traded to take advantage of the high volatility of this market.
An energy SWAP contract allows the producer to fix the sale price of the energy it generates for a future period (week, month, quarter or subsequent years), receiving or paying at settlement the difference against the previously agreed spot market price.
| Fixed Rate | Spot Market | Difference | Final Rate | |
|---|---|---|---|---|
| Receives the Difference | 55€ | 50€ | + 5€ | 55€ |
| Pays the Difference | 55€ | 60€ | - 5€ | 55€ |
An energy SWAP contract allows the supplier to fix the purchase price of the energy it trades for a future period (week, month, quarter or subsequent years), receiving or paying at settlement the difference against the agreed spot market price.
| Fixed Rate | Spot Market | Difference | Final Rate | |
|---|---|---|---|---|
| Receives the Difference | 40€ | 45€ | + 5€ | 40€ |
| Pays the Difference | 40€ | 35€ | - 5€ | 40€ |
TTR Energía trades in energy markets mainly through EEX, Europe's largest energy exchange.
EEX is the leading European energy exchange within the Deutsche Börse group. (German sovereign risk)
TTR ENERGÍA carries out a counterparty risk analysis to define the exposure and the collateral required for each transaction.
Signing of the Master Agreement setting out the general terms of the transaction between TTR Energía and the counterparty.
Based on EEX market prices, the price to be fixed in the SWAP is agreed.
The annex to the Master Agreement is signed, setting out the specific terms of each transaction (product, volume, collateral, price, maturity, etc.).
Simple difference-based settlement system.
Contact us
Phone
+34 93 118 58 94Address
Carrer de la Fontsanta, 46 - Planta 1 08970 Sant Joan Despí (Barcelona)
