System Overview
The ETRM module within your Energy Hub is designed to make your energy trading significantly easier to understand and, provide future insights into how you may carry out energy procurement in the future based on market conditions. It is designed for energy suppliers, consultants and end I&C users.
From data capture and management to risk reporting and analysis, the system works to automate administrative tasks so you can spend more time developing and executing successful trading strategies.
Within the below guides there are three core areas:
- Configuration
- Analysis
- Alerts & Budgets
Required Data
The processes for the Utilidex system are designed to mirror how market participants trade energy. The system functions on four core pieces of data:
- Purchase Requirements
- Forward Prices
- Trades
- Standing Data
Each of the data elements can be entered via the system’s screens or via an FTP connection. Both the Purchase Requirements and Trades are typically sourced from the energy supplier, Forward Prices can be sourced via ICE or an external data source.
The Purchase Requirements are used to define the demand of a basket, traders will typically purchase volume in multiple tranches to close the outstanding volume ahead of the delivery period. The Utilidex system allows for both a monthly demand profile as well as supporting more granular forecasts (half hourly for power and daily for gas).
Forward Prices are used extensively in Mark-to-Market reporting within the system. The un-hedged volume is multiplied against the forward price to value the open cost. When a data feed is configured, these positions and values will update daily.
The Forward Prices can also be used to perform market analysis and benchmarking. Users can view a long-term forward curve and historical price action prior to entering a trade with a counterparty. Users can also compare their performance against market statistics and generate a P&L versus pre-determined benchmarks.
The Trades are used to track when a trade has been entered and the relevant data (e.g. volume, price, basket, tenor). Trades can be entered through a workflow within the system or via FTP.
The final piece of information required is the standing data. This data includes the baskets and counterparties users may trade with and report on. Within the system there are controls which allow users to define limits and rules for both baskets and counterparties.
Reporting
The Utilidex ETRM system allows for additional reporting based on the above data feeds. The reports are available via both Power BI and excel. The reports are broadly categorised to Position management/Mark-to-Market, Market Price Analytics, and Benchmarking for both Power and Gas.
The excel reports display the granular data with a data entry for each month for each basket within the relevant period. The reports and BIs assist the customer in understanding the key numbers which impact their portfolio (e.g. the weighted average cost of energy).
The reports are explained in greater detail in the Analysis section.