Real-Time Reporting and Risk Management for Utilities
Massive changes have occurred in the utilities sector, more recently on the European one. This business is no longer just built around the production, storage and distribution of energy. The energy marketplace has moved from state-owned monopolies to much more fluid and open structures in which first businesses and then consumers have been given a wider choice between providers.
The market has opened the door to new entrants who challenge traditional structures and provide new and different approaches to the marketplace, including different price structures, tariffs and bundles of services/products.
The processes surrounding energy depend heavily on accurate information management.
Utility companies have to monitor their energy purchase strategy by providing a real-time consolidation view of their term purchase structure to the transport network regulator. They need to manage the physical power that they sell and produce reports with a granularity up to 5 minutes to show which power has been sold and what is available. Failure to achieve this balancing act could result in power cuts and blackouts.
Real-time reporting and risk management is therefore at the heart of modern utility businesses.
Faced with this complex reporting environment, utilities have to rely on business processes and robust IT systems to help them manage risk in their operations.
Our expertise
Sophis technology, initially developed for the stringent requirements of trading floors within investment banking, provides the ideal powerful and customisable platform for utilities, including:
- Oil, gas and coal producers
- Power generation companies
- Carbon emission traders
Sophis help utilities manage trading, risk and operational processes through a front to back portfolio and company-wide risk management functionality such as cost arbitrage, foreign exchange and interest rate hedging, future cash flow management, client billing, intra-day counterparty and regulatory reporting, physical power reporting, etc.
Find out about our solutions and technology
Learn more about our commodity expertise
Read more about our asset classes coverage
| "We chose Sophis because it was developed for and stress-tested on the trading floor, a highly demanding environment. We looked at systems designed for the energy trading market but they did not have the sophistication that Sophis RISQUE provides."
Jérôme Knaepen, Ex-Deputy Managing Director at Poweo |
| Two years on from its implementation of Sophis VALUE, Arqaam Capital explains why Sophis was the right choice for its business |
