Lindt was facing 40% increases in energy prices. Usource advised Lindt that price volatility and price spikes were being driven by fundamental changes in the New England region, including a growing reliance on natural gas for electricity production with a significant shortage of pipeline capacity.
By taking the additional market price risk, the client was able to capture the lower prices that resulted in the market. The strategy struck the right cost-benefit balance for the client given the energy market fundamentals and their business objectives at the time.