Gen 150123 buspres_short
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This presentation gives an overview of E&C's activities as an energy procurement consultant.
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Gen 150123 buspres_short
- 2. CONTENT About E&C Energy markets E&C’s approach ePoint E&C’s portfolio Market information
- 3. 3 Printing this document As an environmentally conscious organization, E&C asks you to consider whether it is really necessary to print this presentation. If yes, please select ‘Pure black and white’ in the print – selection menu to avoid that you use too much black ink.
- 4. About E&C
- 5. 5 Gas & electricity Focused on price, not on consumption reduction Consulting, not supplying, trading or brokering CLIENT SUPPLIER CONSULTANT What do we do? ENERGY PROCUREMENT CONSULTANCY
- 6. 6 Integrated international approach Since its creation in 2005, E&C has grown organically, responding to the request of our clients.
- 7. 7 Our job Regulated market Second phase deregulationFirst phase deregulation 1990: UK & Scandinavia 2000: Continental Europe Load profile management & Tariff check-up Tenders & Negotiation Risk management in volatile commodity markets 2005 Energy prices time
- 9. 9
- 10. 10 Gazing into the mist Short term analysis Long term analysis OPPORTUNITY HUNTING “What is the price doing right now?” RISK MANAGEMENT “How do I protect myself against future price movements?” MARKET ANALYSIS STRATEGY At which pace will you take a rise or fall in energy prices?
- 11. 11 Our services Data management ePoint Portfolio consultancy Portfolio management Documentation Visualisation Information Communication Contracting • Organise and execute RFP • Contract management Risk management • Strategy • Monitoring Fixing / unfixing advice • Market intelligence commodity • Direct contact • Monitoring Financial controlling • Market intelligence grid fees & taxes • Budget analysis • Bill validation • Consumption monitoring Fixing / unfixing decisions Trade execution Quote validation
- 12. 12 Setting up a strategy Falling cost of energy = falling price of product ? (and to some extent vice versa) Is the energy cost a high proportion of the margin ? MARKET RISK STRATEGY • keep close to the market average • determine at what pace the product prices react • adapt the forward hedging strategy to it SURVIVAL STRATEGY • keep close to the market average • ‘Lock in a margin’ when possible YES NO YES BUDGET RISK STRATEGY • aim at stabilizing budgets inside the business’s cycles NO
- 13. 13 Opportunity hunting Compared to what the market was prepared to pay for a similar product, how historically good is today’s price?
- 14. 14 Opportunity hunting Buy less (or sell) Buy more Buy more 20 30 40 50 60 70 80 90 100 01/2008 04/2008 07/2008 10/2008 01/2009 04/2009 07/2009 10/2009 01/2010 04/2010 07/2010 10/2010 01/2011 04/2011 07/2011 10/2011 01/2012 04/2012 07/2012 10/2012 01/2013 04/2013 07/2013 10/2013 01/2014 04/2014 07/2014 10/2014 01/2015 €/MWh Percentiles on EEX German Baseload YA (last 750 values) Perc10 Perc25 Perc50 Perc75 Perc90 Y+1 Base
- 15. 15 Opportunity hunting 0-10% 10-25% 25-50% 50-75% 75-90% 90-100% Very low Perc 10 Only 10% of all prices are low er than this level Low Perc 25 Only 25% of all prices are low er than this level Middle Perc 50 50% of all prices are low er than this level High Perc 75 75% of all prices are low er than this level Very high Perc 90 90% of all prices are low er than this level N+1 N+2 N+3 100% 75% 50% 75% 50% 25% 50% 25% 0% 25% 0% 0% 0% 0% 0% 0% 0% 0%prices > VH (90%) Actual prices VL (10%) > prices L (25%) > prices < VL (10%) M (50%) > prices < L (25%) H (75%) > prices < M (50%) VH (90%) > prices < H (75%) Example
- 16. 16 Regular meetings 1. Start meeting 2. Strategy assessment 3. Strategy note 4. ePoint site with monitoring tools 5. Quarterly meetings Contract negotiations Price (un)fixing action
- 17. 17 How about pricing? Our contracts have: - A clear description of fees - Transparant fees - No extra bills Fixed yearly fee Ok for next year? Fixed yearly fee Fixed yearly fee Fixed yearly fee Fixed yearly fee Ok for next year? Ok for next year? Ok for next year?
- 18. 18 More information? Benedict De Meulemeester Managing Director m: +32 495 510 482
Editor's Notes
- About E&C - what we do: energy proc cons, assist large (define large?) industrial clients on buying energy - where 2. Buying energy