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E&C Business Presentation
CONTENT
About E&C Energy markets E&C’s approach
ePoint E&C’s portfolioMarket information
3
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About E&C
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Gas & electricity
Focused on price, not on consumption reduction
Consulting, not supplying, trading or brokering
CLIENT
SUPPLIERCONSULTANT
What do we do?
ENERGY PROCUREMENT CONSULTANCY
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Integrated international approach
Since its creation in 2005, E&C has grown organically, responding to the request of our clients.
7
Our job
Regulated market Second phase deregulationFirst phase deregulation
1990: UK & Scandinavia
2000: Continental Europe
Load profile management & Tariff check-up
Tenders & Negotiation
Risk management in volatile commodity markets
2005
Energy prices
time
E&C’s approach
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Gazing into the mist
Short term analysis Long term analysisOPPORTUNITY HUNTING
“What is the price doing right now?”RISK MANAGEMENT
“How do I protect myself against future price movements?”
MARKET ANALYSISSTRATEGY
At which pace will you take a rise or fall in energy prices?
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Our services
Data management ePoint
Portfolio consultancy
Portfolio management
Documentation Visualisation Information Communication
Contracting
• Organise and execute RFP
• Contract management
Risk management
• Strategy• Monitoring
Fixing / unfixing advice
• Market intelligence commodity
• Direct contact• Monitoring
Financial controlling
• Market intelligence grid fees & taxes
• Budget analysis• Bill validation• Consumption
monitoring
Fixing / unfixing decisions
Trade execution Quote validation
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Setting up a strategy
Falling cost of energy = falling price of
product ? (and to some extent
vice versa)
Is the energy cost a high proportion of the margin ?
MARKET RISK STRATEGY
• keep close to the market average
• determine at what pace the product prices react
• adapt the forward hedging strategy to it
SURVIVAL STRATEGY
• keep close to the market average
• ‘Lock in a margin’ when possible
YES
NO YES
BUDGET RISK STRATEGY
• aim at stabilizing budgets inside the business’s cycles
NO
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Opportunity hunting
Compared to what the market was prepared to pay for a similar product, how historically good is today’s price?
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Opportunity hunting
Buy less (or sell)
Buy more
Buy more
01/200802/200804/200806/200808/200810/200812/200801/200903/200905/200907/200909/200911/200912/200902/201004/201006/201008/201010/201011/201001/201103/201105/201107/201109/201111/201112/201102/201204/201206/201208/201210/201211/201201/201303/201305/201307/201309/201310/201312/201302/201404/201406/201408/201409/201411/2014
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30
40
50
60
70
80
90
100
Percentiles on EEX German Baseload YA (last 750 values)
Perc10 Perc25 Perc50 Perc75 Perc90 Y+1 Base
€/MWh
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Opportunity hunting
0-10%
10-25%
25-50%
50-75%
75-90%
90-100%
Very low Perc 10 Only 10% of all prices are low er than this level
Low Perc 25 Only 25% of all prices are low er than this level
Middle Perc 50 50% of all prices are low er than this level
High Perc 75 75% of all prices are low er than this level
Very high Perc 90 90% of all prices are low er than this level
N+1 N+2 N+3
100% 75% 50%
75% 50% 25%
50% 25% 0%
25% 0% 0%
0% 0% 0%
0% 0% 0%prices > VH (90%)
Actual prices
VL (10%) > prices
L (25%) > prices < VL (10%)
M (50%) > prices < L (25%)
H (75%) > prices < M (50%)
VH (90%) > prices < H (75%)
Exa
mpl
e
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Regular meetings
1. Start meeting2. Strategy assessment
3. Strategy note4. ePoint site
with monitoring tools
5. Quarterly meetings
Contract negotiations
Price (un)fixing action
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How about pricing?
Our contracts have:- A clear description of fees
- Transparant fees- No extra bills
Fixed yearly fee
Ok for next year?
Fixed yearly fee
Fixed yearly fee
Fixed yearly fee
Fixed yearly fee
Ok for next year?
Ok for next year?
Ok for next year?
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More information?
Benedict De MeulemeesterManaging Director
m: +32 495 510 482
