Cost & Income Optimisation
The industry processes and calculations that culminate in income and costs are extremely complex and are the subject of frequent regulatory change. This includes billing customers as well as settlements, balancing, transportation and a multitude of green and social obligation costs.
Energy retailers face particular challenges in forecasting income and costs and in ensuring that the outturn is correct and complete. The extended timeline over which settlements operates, the reliance on the quality of data provided by third parties and the large number of customers served, all provide additional issues and complications. As a result, most experience a difference between predicted and actual income and costs, which is known as an “imbalance gap”. It erodes margin, is very difficult to address and is a significant issue.
In addition, players looking to new bring services and products to market are often unsure of the alternative market models available to them and the income and cost (as well as regulatory) implications of each.
Our income and cost experts can help you deal with these challenges and optimise your income and costs, ensuring that they are correct and complete, that they are underpinned by a robust commercial model and methods, and that senior management has timely sight of the key metrics that provide the necessary assurance.
Our services include: