The introduction of competition to the German gas market means that many utilities and wholesale companies are adjusting their organisational structures and portfolios, not least because some are at risk of making a loss on every unit of gas they sell.
In making these adjustments, market participants must ensure they can meet the key requirements for sustainable success.
To do this, following our survey of German utilities, we recommend that market players adjust their approach to sourcing and sales, portfolio management, risk management, organisational structure and market strategy. Specifically, we suggest five organisational requirements:
match pricing levels as well as mechanisms across sourcing and sales contracts in order to reduce risk exposure and promote competitiveness
manage gas and customer portfolios, aligning pricing, sourcing and sales strategies effectively to enhance value generation
adjust energy risk management to new regulatory and market requirements, with a particular focus on core trading processes, reporting and trading strategy formulation align with liquidity versus equity strategy of the individual company
transform not only gas and customer portfolios, but also organisational structures and culture to support shorter time-to-customer cycles, processing times aligned with market and customer requirements and overall greater market responsiveness
make proactive strategy definition and responsiveness to market changes a core element of corporate culture
PA has a successful track record of helping energy clients in key areas of strategic decision making and commercial advisory, risk management, organisational design and transformation. Our recent global survey, Managing Uncertainty, asked 200 senior business leaders from around the world how they had responded to the financial crisis and what management strategies had proved most effective. Click here to recieve a copy.
To find out more about how PA can help you gain competitive advantage in the gas market, please contact us now or click here.