Improving strategy and market forecasting for a power and gas utility

Bringing lasting change

If your strategy is no longer for fit for purpose and your forecasts are based on old information in a rapidly changing market, your organisation is in a difficult situation. Fortunately for our client, a large European power and gas utility active in markets across the continent, its leadership saw the need for widespread and lasting change.

The threats posed by renewable generation, increasing competition for customers, and volatile gas and electricity prices were starting to impact upon the business. The changing conditions and liberalisation of the European gas market meant our client’s risk management approaches and market forecasts were becoming unreliable.

Our client recognised that its strategy needed to be adapted to the changing market conditions. It also knew that the new strategy must be based on an improved approach to market forecasting.

A platform for a better strategy

Using our deep insight of the European gas and power market, and the impact of the global gas and LNG industry upon it, we created a pan-European gas and power model built on a proprietary software platform, which models and visualises complex markets.

A team of our consultants worked alongside the client’s team to implement the model and its reporting system. We were able to demonstrate how to use the model most effectively, so that our client would get the maximum value from the data available.

Generating reliable forecasts

Following its implementation, the model now generates insights that are fed directly into our client’s strategy and business planning processes. The information from the new model gives guidance on a range of considerations, including markets that require greater or less focus and potential hedging strategies.

The full complexity of the changing market now informs our client’s strategy, which means its commercial decisions are based on up-to-date and reliable market forecasts.

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