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:
We are the experts in the electricity and gas Energy Market Arrangements and have a proven track record of enabling our clients throughout the UK to deliver their strategic goals.
We ensure that we thoroughly understand the underlying objectives and desired outcomes, and make sure that this drives all that we do. Our clients trust us to deliver and value our flexible, collaborative and benefits driven approach.
Our consultants and information service practitioners have many years of industry experience and our collective pool of expertise enables us to deliver exceptional value to our clients.
At Engage Consulting, our focus has always been to provide the highest level of support to our clients. All our Consultants have extensive experience and are supported by the best trained support teams in the industry.
Engage analysed gigabytes of our portfolio data and identified customer accounts causing the imbalance. They also successfully identified the key causes, provided detailed recommendations and proposed a model settlements function to allow us to improve our processes and manage future imbalances.
Widescale compensatory error adjustments on Settlement data by Suppliers had an unintended but very significant impact on DNO allowable revenue under the regulatory loss incentive scheme in place at that time. Engage applied their detailed industry knowledge to develop a robust methodology for quantifying the impact of these adjustments, applied this to large volumes of our metered data, and produced a far more accurate determination of our losses. This enabled us to engage with the regulator and resolve this industry wide issue.
