Senior Hedging Strategy Analyst
Energy Supply Hedging purchases £3-4bn per year of gas and electricity on behalf of British Gas' residential and business customers. The Senior Hedging Strategy Analyst will work with Centrica’s consumer and business divisions to devise and implement hedging strategies to reduce risk and deliver competitive energy costs.
The Energy Supply Hedging team is based in Centrica Energy Marketing & Trading in London, providing route to market services for Centrica's UK residential and business supply businesses and a portfolio of some of the biggest Industrial & Commercial customers in the UK through our customer optimisation desk.
The team is responsible for the development and execution of hedging strategies for the gas and power portfolio:
- UK Home accounts for an annual demand of c.40% of the total gas and c.20% of the total electricity consumer demand in the UK
- UK Business consists of Small Medium Enterprise (SME) and Industrial & Commercial (I&C) customers with a collective annual demand of around c.8% of the total gas and electricity demand for UK businesses
The senior analyst taking on this role will lead the development of hedging strategies to support British Gas' competitive position and respond to a changing regulatory environment.
The Senior Hedging Strategy Analyst will take the commercial lead in developing commodity and weather hedging strategies to support Centrica’s strategic goals.
They will have the opportunity to develop key risk mitigation strategies that support Centrica’s competitive position and feed directly to the bottom line. They will also be expected to respond to the rapidly changing market and regulatory environment, with potentially significant effects on the way we hedge our commodity risk.
The senior analyst will have exposure to senior executives within British Gas and be expected to work collaboratively with colleagues in Pricing, Demand Forecasting and Risk teams, along with traders in Centrica Energy Marketing and Trading.
This is an important strategic role which requires a candidate with a high degree of numeracy.
- Understanding, articulating and implementing commodity hedging strategies for UK Home and UK Business
- Preparing presentations for senior executives, proposing commodity and weather hedging strategies
- Developing KPIs to demonstrate the effectiveness of our hedging execution
- Leading the development and operation of models to describe the risk we face in quantitative terms
- Writing papers to explain the financial and risk impact of decisions we are evaluating
In order to succeed in this role, candidates should:
- A highly numerate individual with previous experience in an analytical and statistical role
- Be willing to challenge the status quo; proactively championing improvements to strategies and processes
- Have excellent communication skills, in order to crystallise complex commodity market risks for people with different levels of knowledge, at all levels of the business
- Be able to produce clear and convincing documents in Powerpoint and Word outlining proposed strategies
- Demonstrate an in-depth understanding of the UK energy supply market, retail pricing and competitive market dynamics
- Have a detailed knowledge of the regulatory changes impacting UK energy markets
- Have the ability to explain and use applied maths and statistics to derive solutions to complex business problems
- Have a good working knowledge of energy trading, particularly with respect to commodity and weather risk
- Demonstrate the ability to work with other teams across British Gas and Centrica; including pricing, risk, demand forecasting, regulatory and governance
- Proactively research new issues and use a variety of relevant strategy analytical techniques to assist in designing strategies and making recommendations
Other desirable skills and knowledge include:
- Experience operating in an Agile project management environment
- Understand the concepts of volatility and correlation and their impact on weather and commodity risk
- Knowledgeable in simulation modelling such as Monte-Carlo and scenario simulations
- Apply good modelling practice in the development of business models, along with associated documentation and control procedures
- Programming skills such as Python and VBA and experience querying SQL databases and building Power BI reports
Centrica plc, a FTSE 100 company, has operations in UK, North America and Europe. With 30+ million customer-product relationships, Centrica's vision is to become the leading integrated supplier of energy and related services for its chosen markets and maximise value to shareholders. Centrica's brand names include British Gas, Direct Energy (North America). At Centrica, our purpose is to help people today and secure energy for tomorrow.
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Agencies: Centrica operate a preferred supplier arrangement, however if you wish to be considered at the next review session please submit a brief overview of your capability to PSL@centrica.com.