Energy retail optimization
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Situation
A Swiss-Italian retailer buys energy from the electricity markets (pool and futures) for selling it afterwards to consumers or other retailers at a fixed price.
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Complication Because of the market price uncertainty and the variable-fix pricing mechanism, profit volatility becomes a key issue for the retailer.
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Solution We modeled uncertainty and sequential decision making of the retailer in a simulation-based framework, where the profit variability is controlled via Conditional Value-at-Risk. The retailer provided us with a back-testing result showing a 30% increase in risk-adjusted profitability over the past 3 years.
What clients said aboutour projects
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Bron Sharman Senior Oil Trader “Unlike many advisers I’ve worked with, Trading Integral Solutions don’t have to pretend to be interested in their clients: they focus on what really matters and strive to add value in an optimal way.” Bron Sharman, Senior Oil Trader at SOCAR Trading -
Olga Kutuzova IFRS Group Manager "Trading Integral Solutions applied high quality standards when they delivered their project to us. We benefited greatly from our interaction with their highly skilled team of experts!" Olga Kutuzova, IFRS Group Manager at Novatek Gas & Power -
Jaroslaw Wajer Partner "I have cooperated with Trading Integral Solutions several times. They supported us during the design and implementation of trading departments and company strategies for our power utilities clients. I appreciate their trading expertise and profound knowledge of risk management. I would truly recommend cooperation with Trading Integral Solutions." Jaroslaw Wajer, Partner Performance Improvement at Ernst & Young