Our staff have an established track-record of supporting clients in the delivery of large business improvement programmes spanning the wider commercial organisation and business model. This work has included large established energy companies as well as set-up of entirely new commercial and trading operations in both mature and emerging markets. These programmes typically involve multi-disciplinary teams extending to business process design and ETRM-related IT, as well as programme management.
We assist organisations in devising trading strategies that hedge the market risk inherent in their physical assets (generation and customers) in a manner which is consistent with the organisation’s risk appetite.
This is often done in conjunction with the development of new bespoke market risk models with the capability to encompass the organisation’s entire commodity portfolio, including fuel and carbon exposures as well as power. Although necessarily reflecting the specific priorities of each organisation, the strategies we develop typically focus on the management of volumetric risk (e.g. generator forced outages, customer demand) as well as price risk.
We have assisted clients in setting up new trading functions in liberalising markets. Set up includes many aspects of commercial model design as well as ETRM service offerings, including defining the trading mandate, trading / hedging strategy, trading organisation design, risk governance, risk policies and controls, risk analytics and modelling, business process design, ETRM package and supporting IT implementation.
Design and implementation of market-based performance measurement and transfer pricing regimes for trading / portfolio management business units which:
Design of key commercial and risk management business processes with focus on:
Extensive experience of working with traders, risk managers and IT professionals to help define and implement ETRM vendor systems, as well as internal risk and valuation models. In particular, our senior staff have experience of assisting clients with: