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Retail Energy Markets2019-06-22T17:51:08+01:00

The energy retail markets are rapidly evolving: large suppliers who historically dominated the market have been losing share to challenger suppliers, and consumers are no longer exclusively passive users but increasingly contribute their own generation and storage. Larger consumers actively engage in load-shifting and triad optimisation, with aggregators providing demand-side response services across multiple smaller consumers. Distribution network operators are transitioning into regional system operators and increasingly developing local flexibility markets and virtual power plants.

Connected homes and the growth in electric vehicles provide the opportunity for new retail business models, and the energence of time-of-use pricing down to the domestic level. However the retail space is both competitive and highly challenging. Margins are tight, operational costs are significant and the regulatory burden onerous, particularly for small entrants who often lack the expertise and credit strength to effectively risk manage their wholesale price risks.

I work with suppliers to develop cost effective procurement and risk management strategies, and help them to navigate their complex and changing regulatory obligations. I also work with business to negotiate corporate power purchase agreements (PPAs).

Areas of focus

Energy
Procurement

Appraising different procurement strategies for electricity, gas and green certificates:

  • Identifying suitable partners or counterparties
  • Supporting clients in negotiating procurement and/or trading agreements

Assisting in the development of governance and risk management frameworks to support energy procurement

Cost
Optimisation

Providing analysis and advice in relation to management of non-commodity costs

  • Understanding the different types of costs
  • Strategies for minimising non-commodity costs, leveraging business flexibility to support load shifting to avoid high-cost periods
  • Analysing the likely evolution of non-commodity costs based on cost and customer number forecasts

Risk Management
& Hedging

Analysing asset portfolios including available revenue streams cost profiles

  • Analysis of any associated hedging portfolio and advising on any hedge novations or re-structuring
  • Post acquisition management and monitoring including developing asset optimisation strategies

Regulatory
Support

Assisting clients in their engagements with Ofgem, National Grid and Elexon particularly in relation to wholesale market activities

Helping clients to understand their obligations relating to the Government’s environmental policies

  • Advising on when various obligations apply

Retail Energy Markets Insights

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