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CAPABILITY


Pricing for Utilities

Define effective pricing logic to maximize margins.

Overview

The creation of a new product in the Energy market requires a vast amount of information including historical quotes and forward price of energy commodities, price trends and related indexing, customers demand and terms of supply contracts. Tools to analyze this data must be extremely flexible, to support in the definition of custom formulas and strategy. A holistic approach to the different components of the client price allows the company to stop the continuous reduction of margins, enabling them to select the right clients for their portfolio.

The Pricing application supports the enterprise in estimating the pricing for the sales offering, considering real-time inputs both from the risk side (unbalancing fee, hedging fee, outstanding risk fee) and the portfolio management side (price of the commodity, margins, profiles). It allows for the comparison of alternative pricing, formulas and supply costs and allows for that information to be integrated into existing workflows within the sales department, who will take advantage of the output data provided by the application to define pricing, having time to focus on maximizing margins.

Specific Services

The Pricing for Utilities application can assist the sales area in building a line of effective products, by dynamically comparing formulas with user-customizable benchmarks and by analyzing the profitability of formulas on different customer segments. The application allows the definition of pricing offers suitable for large customers—handled by a dedicated key account—or for the construction of price list offers—suitable through massive distribution channels or agencies.

Key features

  1. Pricing: Enables the Sales Force to easily calculate the optimal pricing for all clients

  2. Outstanding Risk Probability: Allows the Risk Manager to calculate a risk score for each client

  3. Unbalancing Risk and Cost: Helps the Risk Manager to calculate the unbalancing cost related to every single client

  4. Hedging Cost Fee: Allows the Portfolio Manager to calculate hedging cost at a client level

  5. Price and Demand Forecasting: Allows the Portfolio Manager to forecast the expected price of the commodity and the expected demand for each client

Why Accenture

The scalable Accenture Insights Platform includes resources applications, providing fast and easy access to an array of industry and functional applications that bolt onto the platform. Clients, in turn, achieve quicker time to market and more rapid results.

Clients also benefit from Accenture Analytics’ wide range of capabilities rooted in:

  • Industry knowledge. The validity of our advanced analytics outcomes is underpinned by our deep knowledge of the sector.

  • Business. Applications are designed for business users and focused on business results, minimizing the complexity often related to advanced analytics. Getting to accurate outcomes does not require users to have statistical, mathematical or IT knowledge.

  • Flexibility. Applications are based on a framework that can be easily integrated in an enterprise operational environment to enable business process action.