The energy industry caters to almost every vertical in today’s hyper-connected world and it has always been subjected to the constantly changing needs of companies. To ensure smooth operability, energy companies employ energy trade and risk management (ETRM) solutions to reduce costs, increase efficiency and maximise profits. Every organisational process, which comprises managing complex energy trades; mergers; portfolios of various assets; mitigating external and internal risks; moderating deal settlements; and invoicing, constitutes only a few of the many functions that an ETRM application offers. It is a mean to conduct holistic, enterprise-wide management of all physical and financial trades alongside the lifecycle of an energy commodity.
The criticality of ETRM solutions arises when power and other utilities companies face unwarranted situations concerning energy prices and intricate transmission networks systems along with evolving regulatory and compliance policies. The chances of an organisation leaving their bottom lines susceptible to numerous risks are significantly higher without an appropriate countermeasure. With effective ETRM solutions, organisations are equipped with clear visibility of various energy portfolios and their consequent market positions. It thus allows C-suite executives to strategise a wide array of operations, improve compliance, business analytics for large MNCs, and accounting as well. With time, companies are beginning to view ETRM systems as the silver bullet in asset management, which also ensuring the safety of all data within their digital infrastructures. Additionally, with features like sophisticated scheduling, stress testing, and other advanced risk management techniques, back-end operators are empowered with real-time data inputs of vital information from the original trades up until the end of their lifecycle.
ETRM solutions have now been a part of the broader wholesale energy trading application landscape for around 20 years, evolving in step with both business and technology trends over that period. With an estimated compound annual growth rate (CAGR) of 3.5 per cent between 2018 and 2024, the ETRM marketplace expected to expand continually and consistently—especially in the oil and gas industry. The numerous solutions made available to energy corporations have now developed and evolved in order to deliver intraday capabilities, which promises robust and expeditious functionality throughout an organisation’s workflows. And, with the pace of digital adoption at an all-time high, speed is of the essence as quick trading paves the way for newer, more lucrative opportunities throughout the industry.
On that note, we have listed some of the most promising ETRM solutions providers that are spearheading the charge toward fulfilling the rising demands in the marketplace.
In this edition of Energy CIO Insights, we present to you the “Top 10 ETRM Solution Providers in UK – 2019.”