Product Details Supplier Info More products

Ener-G Procurement has revealed that its Riskmanager software is helping manufacturing and engineering businesses manage the risk of energy purchasing.

Riskmanager monitors wholesale market prices in real time, automatically tracking, recording market movements as they happen to support decision making.

The company’s analysts work with customers to develop a personalised purchasing and risk management strategy and a detailed implementation programme.

Riskmanager then automatically prompts for action based on this strategy, helping the analysts to fine-tune each transaction.

Mark Alston, general manager of Ener-G Procurement, said: ‘By projecting market activity and tracking live evolution of the price curve throughout the day, our technology helps us to anticipate actions and then identify the most opportune time to place trades for customers.

‘Riskmanager removes the human error of position monitoring, automatically alerting our team when a customer’s limit or trigger is approaching.

‘It’s all about precision timing and informed negotiation.

‘A failure to act in real time can mean budget limits are exceeded or price opportunities missed.

‘Our analysts are able to see the second-by-second evolution of a market price, and are provided with prompts on the required action specific to each customer,’ Alston added.

This helps to ensure energy volumes are purchased (or excess generation is sold) when market prices are most advantageous, while an in-depth knowledge of live market trades and price history means Ener-G’s market specialists can negotiate from a strong position on the final price.

Alston said: ‘A key feature of Riskmanager is its use of Value at Risk methodology to estimate the likely range of cost for the market exposure involved over an agreed time frame.

‘This helps warn of future limit breaches rather than just reacting after the event,’ he added.

The system’s automatic Mark-to-Market (MTM) reporting also gives clients a regular update of the current market cost of completing all outstanding purchases.

Benchmarking MTM against a pre-defined budget or alternative criteria provides the most up-to-date picture of performance, combining actual purchases already made with the current cost of completing all floating periods.

Alston said: ‘MTM, together with Value at Risk, provides us with the complete risk picture for our clients and helps us to inform their procurement decisions, for example, to take early, or to judge the risk of delayed purchasing.

‘Our technology automatically checks all client trigger against live market prices and gives our analysts instant SMS and e-mail alerts whenever individual triggers are hit.

‘With Riskmanager we can show any previous trade in the context of the market on the date and time it took place.

‘This gives total transparency to all our wholesale purchasing negotiations and acts as a quality check on our procurement efficiency.

‘It also allows us to do a trade audit for any historic purchases made by a previous broker or supplier.’

View full profile