Our Dynamic Reaction Model
Our risk management is based on a structured and well-proven model, managing when and how power is purchased.
Every business with electricity consumption is exposed to market price movements.
Electricity costs are influenced by complex and volatile markets and fundamentals. This makes the chosen strategy important for managing price risk and financial performance over time.
Built on two core principles
Applied through active portfolio management, our Dynamic Reaction Model is built on two core principles, determining the timing and level of hedging based on actual market conditions.
Protection when prices rise
The model increases protection as market prices rise, reducing exposure to high price periods.
Benefit when prices fall
When prices fall, the model maintains flexibility to benefit from falling market prices.
Spot
No hedging
The customer follows the market price with no active management. Full upside in low-price periods, full exposure in peaks.
Step hedge
Time-based
Power is purchased gradually on a fixed schedule, independent of market conditions. Spreads timing risk, but ignores price signals.
Dynamic Reaction Model
Price-based
Bergen Synergy's model adjusts the hedge ratio as market prices move, increasing hedging degree when prices rise, reducing when they fall.
Dynamic Reaction Model against alternative strategies
Spot, step hedge and DRM, side by side
Three strategies, 2019–2026
Annual price 2019–2026 (øre/kWh).
What this means for you
The goal is not the lowest price in a single year, but the lowest cost over time with the worst year kept under control.
Lowest average cost, with the worst year kept in check
Average and highest annual cost per strategy, 2019–2026 (øre/kWh).
DRM delivers the lowest average cost, while its worst year stays on par with step hedge and far below unhedged spot.
How we work
The Dynamic Reaction Model is Bergen Synergy's proprietary approach to electricity procurement and power risk management, developed for energy-intensive companies in Norway, Sweden, Denmark and Finland.
Unlike fixed time-based hedging strategies, the model adjusts the hedge ratio dynamically based on actual market price movements, increasing coverage when prices rise and preserving flexibility when prices fall.
Across 2019–2026, the model delivered an average cost of 22.7 øre/kWh, compared to 43.3 for step hedge and 62.0 for unhedged spot. Bergen Synergy applies this model actively on behalf of industrial and commercial customers across the Nordic electricity market.