Energy Suppliers are potentially losing millions of pounds because of the imbalance or gap between energy sold and purchased. Engage’s Revenue and Margin Assurance (RAMA) service seeks to ensure that the underlying complex issues are investigated and resolved. Our methodology is a proven concept and we have delivered the benefits to increasing numbers of energy suppliers both large and small. It is set out  not only to increase your profitability by minimising the issues in the short term, but also to identifies the root causes and ensures there is an enduring solution in place and the ability to monitor and review your performance in the long term. Vital knowledge is transferred to your key members of staff, who will continue to manage your position on a daily basis.

Most energy supply businesses have an energy “imbalance” or “gap” between their purchases and sales. This imbalance can have a significant material financial impact which often totals tens of millions of pounds. Some suppliers accept it and factor it into their prices; others work hard to minimise it in order to gain a competitive edge. In this current price sensitive climate, any advantage that can be achieved through the reduction of this imbalance will provide positive consequences.

To optimise the success of any supply business it is necessary to ensure that energy volumes billed are consistent with volumes allocated by the central settlement systems and tariffs are set so as to win and retain customers and deliver target margins.

Consequently, imbalance or gap issues arise through:

Figure 1 - the causes of imbalances that are costing suppliers millions of pounds a year

In order to resolve, often third party organisations are used by suppliers to recover the imbalance. However, the rates charged by these organisations are high and, most significantly, these organisations do not share the root causes of the issues which serves to perpetuate the situation.

The Engage Solution puts the supplier back in control and it is founded on the Revenue and Margin Assurance life cycle.

Figure 2 - the Revenue and Margin Assurance Cycle that puts suppliers back in control

Figure 3 – volume and cost analysis is used to identify the imbalance issues

Engage has a significant wealth of knowledge and experience of the wholesale and retail trading arrangements which we have used to deliver significant savings to our clients. Our expert consultants were instrumental in the design of these arrangements leading up to the introduction of full competition in 1998 and the implementation of NETA in 2001. We have helped many clients resolve difficult operational issues in the market and have led many of the data quality initiatives for ELEXON. We have also led key industry change and improvement programmes such as the Supplier Transfer Programme and the Smart Metering Programme for the Energy Retail Association (ERA).