With autumn in full swing, and with longer nights and colder weather ahead, this week we’re taking a closer look at the challenges and opportunities faced by energy suppliers during Winter, and what steps suppliers can take to ensure they’re ‘winter ready’.
The last few years have seen some interesting development in the energy industry, with commodity prices falling to record lows whilst levels of competition have rose to record highs.
Falling commodity prices have acted as a catalyst for this increased competition, with new entrants – unencumbered by long term purchasing and hedging – reacting quickly to the fall in price and offering market reflective tariffs that are cheaper than their bigger, slower rivals.
But, with energy prices back on the rise, the reverse will be true – and new entrants may find themselves exposed to the increasing wholesale costs and heightened market volatility, whilst established suppliers will be able to weather the storm.
Regardless of size or hedging capabilities, though, the increased demand from customers brings with it higher industry costs and a greater exposure to error as a result. So commodity aside, industry obligations and charges also become more challenging.
For suppliers looking to get winter ready, control is key.
Oversight and visibility of costs is critical to any business, but for energy suppliers this is an inherently difficult task. The data that underpins the industry is kept at an aggregate level, making it difficult for suppliers to break down and understand.
At ENSEK, we’ve developed an energy data reconciliation platform, Libra, that addresses this challenge head on. By disentangling the vast industry data set, we’re able to provide suppliers with intelligent insight into their portfolio, with visibility of industry costs right down to meter level.
Winter is coming, so to make sure your supply business is ready get in touch today.
