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:

  • Imbalance Gap Resolution: Identifying and quantifying the “imbalance gap” for each meter point, resolving issues so that revenue can be recognised, and addressing the root cause to reduce the number of new issues.
  • Forecasting Method Assessment: Reviewing and assessing the cost, income and gross margin forecasting methods, including energy forecasting, customer churn and reconciliation forecasts – taking into consideration the proposed regulatory changes.
  • Management Information Provision: Establishing the “dashboard” information required to provide senior management with visibility and insight into the income and the costs – including the key parameters, their source, derivation and presentation.
  • Commercial Model Assessment: Analysing and assessing the range of commercial models available for bringing services to market and the incomes and costs associated with each – taking into consideration proposed regulatory changes.

Why Engage Consulting?

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.

>> Read More

How We Work

Independent Advice

We provide trusted, independent advice enabling you to address current issues and to realise your longer term strategic goals.

Understanding and Benefits

We take time to thoroughly understand your objectives and are benefits driven so that we achieve the outcomes you want.

Working Together

We work with you, your teams and your stakeholders to bring about the best results for you.

Flexible Approach

We flex our approach to best suit your needs and circumstances so that we deliver an excellent customer experience.

What Our Clients Say

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.

    Lesley Baxter
    Finance Director, Total Gas & Power
  • 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.

    Allan Hendry
    Head of Licence & Revenue, Scottish Power Energy Networks

Get In Touch - Simply Call 0207 4050740

Experts in the Electricity and Gas Energy Market Arrangements

Who We've Worked With