"Using BusinessObjects WebIntelligence solution to report on real time actions of National Grid through the BMRA enables Powergen to interpret what is happening in the marketplace quicker than most industry participants"

Garry Pickering, Trading Analyst, Powergen Energy Trading."

Business Objects Supports Powergen in Deregulated Energy Trading

Powergen's UK Business produces, distributes and sells electricity to retail and commercial customers throughout the UK. Energy Trading, the commercial hub of this business, is active in eight markets and is a major participant in the UK gas and electricity markets. In addition to trading, the group provides an overall risk and portfolio management service for the Powergen UK business as well as gas shipping and pipeline management.

Powergen is using business intelligence from Business Objects for rapid access to information that is providing the company with a strategic understanding of the energy market and is enabling it to interpret what is happening in the marketplace faster than other industry participants.

Business Challenge

 Energy Trading is responsible for maximising the value of Powergen's integrated energy business and achieves this through a cross commodity approach, trading energy 24 hours a day as part of an integrated trading strategy.

Over the past decade, wholesale electricity prices have eroded significantly. In this environment the ability to optimise assets through a detailed understanding of the market, to act quickly and to innovate and implement new products is vital.

At the same time, the introduction of the New Electricity Trading Arrangements (NETA) in March 2001, presented Powergen, and all other players in the UK electricity market, with a different set of potential risk exposures. Managing these risks is a key objective for Powergen.

To support traders in their optimising role, Powergen requires excellent real time information. However, information provided in the raw National Grid, BMRA, is inappropriate for in depth analysis. Additionally, reporting within the core trading applications is complex, requiring specialist resource and hence not delivering real, timely benefit to traders.

The Solution

 Powergen has implemented Business Objects WebIntelligence®, the integrated query, reporting, and analysis solution for the Internet, to deliver reports from a centralised data warehouse. This is currently integrating information from its trading systems, various market sources and BMRA data feeds, settlement systems etc, to both the Energy Trading department and its Power Stations.

Powergen is using WebIntelligence to report on information derived from the BMRA real time information, with reports automatically refreshed every few minutes and displayed across the trading group on large plasma screens.

"Using BusinessObjects WebIntelligence solution to report on real time actions of National Grid through the BMRA enables Powergen to interpret what is happening in the marketplace quicker than most industry participants," says Garry Pickering, Trading Analyst, Powergen Energy Trading.

Key Benefits

Improved Profitability
With the introduction of NETA, owners of low load factor plant saw their share of the market reduce dramatically. Using business intelligence (BI) from Business Objects, Powergen's in depth analysis of the Balancing Mechanism led to a repositioning of capacity in the balancing services market, resulting in significantly greater contribution from these services.

Risk Reduction Managing risk is a key consideration for Energy Trading. The company is using Business Objects solutions to:

• Deliver real time reports to traders making immediate decisions.
• Gain in depth understanding of the market by analysis of BMRA information to attain a strategic overview of the competition to drive longer-term strategy.

Simon Moody, Delivery Manager, Powergen Energy Trading IS says, "Business Objects is providing Powergen Energy Trading with a strategic understanding of the energy market which is critical to our risk management activities."

Mobile Support Using Business Objects mobile technology, Powergen plans to provide trading support staff with access to information when out of the office, ensuring 24/7 support for the trading environment.