According to Energinet.dk, the so called "Engrosmodel" will be implemented in the Danish electricity sector on October 1st 2015.
The new model changes conditions in the electricity sector as follows:
The new market model significantly changes conditions for Danish electricity suppliers, and the debate in the industry has naturally been centered around the upcoming challenges. Topics such as billing, liquidity and integration to the new data hub are certain to stir up the industry.
However, the introduction of the "Engrosmodel" need not demand sleepless nights. At Conscius, we work every day towards ensuring an easy transition to the new situation. Our main focus is preparing our contract management solution - Midas - to support the new market structure.
We focus partly on solving the challenges of the new market structure - partly on the helping our customers benefit from the opportunities presented by the new situation. And we already have a firm grasp on how Midas may ease the transition.
Midas already integrates to a number of external systems, and will naturally be able to integrate with the data hub that is part of the new market structure. Additionally, Midas is a robust system, which already manages vast amounts of data. Likewise, the system will be able to handle charges and taxes, which will enable suppliers to easily create an overview and follow up on contracts.
"Obviously, there are aspects of the new situation that require serious thought, but with the right strategy and the right software, I believe that the new market structure will present more opportunities than challenges for electricity suppliers. I can't wait to see, who decides to exploit these opportunities," says VP Strategic Products, Kenneth Sørensen.
First of all, the new market structure will present new opportunities for electricity suppliers. For instance, it will be possible to implement alternative and more transparent - and thereby more competitive - pricing models.
"It is easier for consumers to understand a fixed price per month or a graded pricing model, than for instance cents/KWh. Of course this new product pricing emphasizes the need for effective market risk management, availability of updated consumption data etc." says Kenneth Sørensen.
Midas already presents a unique overview of the entire supply business - from pricing, product supply and consumer profiles over sales to hedging, actual consumption and billing. The new market structure as well as the data hub enables us to further improve the system, making it even simpler for suppliers to obtain a valuable business overview, adapt strategies and processes, minimize risks, strengthen competitiveness and increase profit.
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