Leading Natural Gas Development Company Manages Expanding Operations with Eka TRM
Energy markets are extremely volatile, often subject to dramatic fluctuations in price. For energy market participants that produce, process, or market energy products, these sudden swings in energy prices impair forecasts and negatively impact bottom lines. Over the last few years, the unparalleled volatility in power prices, complex transmission networks, and changing regulatory requirements have increased uncertainty, thereby threatening profits.
A leading utility, power, and gas company was looking for a single integrated system to support the entire scope of its business, including all front, middle, and back office functions. Its existing commodity trading and risk management solution was unable to handle complicated risk requirements and provide the required accuracy and speed for end-of-day calculations. Additionally, the system could not handle the company’s rapidly expanding business. The company required a solution that could audit specifications in a single system of record and provide robust reporting to meet management and regulatory obligations.
The company was hampered by delayed end-of-day calculations that were often inaccurate. The lack of system integration required cumbersome, inefficient manual processes. Poor handling of market data exposed the company to increased risk.
The company implemented Eka’s TRM solution to manage deal capture, trade management, operations, and risk and settlement for both wholesale and retail businesses. The solution provides risk management capabilities, including mark-to-market, exposures, P&L explained and advanced risk capabilities with VaR and custom scenarios. It enables accurate regulatory reporting and manages exchange connectivity, asset integration, and GL integration.
Using Eka TRM, the company has a centralized data repository for all risk data and a unified system that integrates wholesale and retail power, and gas. The company accurately captures physical and financial position to provide a clear picture to management.
The company has greater control over trading, risk management, and the supply. Eka also provides predictive analytics, visualization, and optimization, enabling the company’s management team to make better, faster, smarter decisions. Its advanced analysis and reporting module gives the company a definite competitive advantage.