Day in the life: Flexible Energy & Risk team

Nick Heng, Head of Flexible Procurement & Risk

Nick has over 20 years of experience in the energy sector, specialising in energy procurement for large UK corporations. As Head of Flexible Procurement & Risk at Control Energy Costs, he applies his expertise in managing complex energy procurement strategies. Previously, he led global utilities procurement at Johnson Matthey.

Nick excels in negotiation, commodity risk management, spend analysis, operations management, and supply chain optimisation. His deep understanding of the energy market and strategic procurement has consistently delivered significant value, optimising costs and effectively managing risks. Nick joined Control Energy Costs in October 2023, drawn by its strong client-focused approach.

Mike Stafford, Flexible Procurement and Risk Manager

Mike’s journey into the energy sector spans over 15 years as a consultant, preceded by an extensive career working with independent suppliers, the Big Six, and meter operators. During much of the last decade, he’s focused on helping clients navigate the often-complex energy landscape, simplifying market movements so they can concentrate on their core business activities.

In August 2023 he took on the role of Flexible Procurement and Risk Manager at Control Energy Costs, drawing on his experience to guide clients through the intricacies of energy procurement and risk management.

The role of the Flexible Energy & Risk team

The Flexible Energy & Risk team’s primary responsibility is to set hedging strategies, articulate these to clients and execute them while ensuring policy compliance.

As team leader, Nick's role involves guiding the team in best practices, developing a flexible procurement offering by enhancing the risk management provision, and deploying technical analysis and supporting tools.

Nick’s leadership approach is inspired by the leaders he encountered during his military service and lessons learnt from high-performing teams in Formula 1. Having experienced the benefits of a Just Culture in military aviation, Nick actively promotes this mindset within his team.

“The things I most enjoy about risk management is also the most challenging aspect; the unpredictable nature of commodity markets and how they actively promote keeping abreast of developments in geo-politics, economics and news events.”

-Nick Heng

While Nick and Mike both contribute across market monitoring, setting and executing trade strategy, compliance, and client engagement/liaison, Mike’s role often leans towards client-facing duties.

This involves translating complex, jargon-heavy internal discussions into clear, actionable insights for clients across a variety of sectors. One day, Mike may be explaining the nuances of North Sea gas plant maintenance to a client in the hospitality industry, and the next, he could be discussing how renewable Power Purchase Agreements (PPAs) can help clients mitigate the impact of the Carbon Border Adjustment Mechanism (CBAM).

Regardless of the task, Mike’s goal is always to ensure Control Energy Costs’ clients have full confidence in the Flexible Energy & Risk team’s guidance and understand the underlying factors driving their recommendations.

“You’re called upon to have an understanding of the world beyond your own office and your own country, which makes you something of an internationalist even from the comfort of your own desk. As a result, you get a sense of being part of something bigger than yourself.”

-Mike Stafford

Navigating the challenges of a volatile market

The energy markets often move in response to perceived supply and demand fluctuations or market sentiment rather than actual physical supply levels. For instance, trading screens might indicate rising prices due to news events that are irrelevant to UK gas supplies. In such moments, it’s crucial to keep a cool head and maintain a steady approach.

Flexible procurement, which is central to the Flexible Energy & Risk team’s work, adds more value when extended over longer contract periods. The principle is that it’s about “time in the market” rather than “timing the market”. If businesses commit to contracts that extend up to six years, the team can start managing clients’ risk earlier, offering better value over time. However, convincing businesses to adopt this long-term view can be challenging, especially when they tend to focus on shorter time horizons.

Team dynamics

Within the Flexible Energy & Risk team, mutual support and the freedom to challenge each other are key.

Nick encourages this diversity of thought and understands that groupthink can be dangerous in a risk management environment. By fostering a culture of open debate and diverse analyses and methodologies, the team not only grow as professionals but also ensure their clients benefit from a well-rounded, thoroughly considered approach. This, ultimately, leads to more robust outcomes for clients.

Looking ahead

Over the past year, the team has implemented several enhancements across governance, systems, and personnel, positioning them well for the future. Over the next year, they will develop tools for helping clients better understand their risk appetite and volume forecast.

Nick looks forward to further enhancing Control Energy Costs’ risk management service delivery through continuous improvement of their delivered price and client engagement.

As Mike continues in his current role, he’s excited to see how the ongoing transition from fossil fuels to renewable energy unfolds and to help their clients navigate whatever challenges and opportunities lie ahead.

Learn more about our team or contact Control Energy Costs for further information.