Solutions / 01
Power trading
Electricity trading connects a market view with a delivery obligation. A meaningful proposal must account for the delivery period, volume profile, price structure and the ability of both parties to meet their commitments.
When the commercial requirement changes
A supplier may need to cover a delivery period, while a trader may need to adjust an existing position. These situations can involve the same volume but different timing, credit and settlement requirements. The discussion starts by distinguishing the position already contracted from the quantity still open, and by identifying the decision deadline. This gives the proposed transaction a defined role within the wider portfolio.
- Uncovered purchase or sale positions
- Changes to a delivery profile
- A decision timetable linked to the requirement
Start with the actual requirement
A purchase or sale should begin with a clear description of the position to be covered. We discuss delivery periods, expected volumes, the shape of the profile and any existing commitments before considering a commercial structure. This helps distinguish a short-term adjustment from a longer-term requirement.
- Delivery period and delivery point
- Volume, profile and permitted tolerances
- Existing positions and commercial objectives
Make the terms understandable
A headline price tells only part of the story. The proposed price mechanism, settlement reference, payment calendar, credit requirements and treatment of deviations need to be considered together. Fixed-volume and production-linked arrangements allocate risks differently; the suitability of each depends on the actual transaction.
- Price mechanism and applicable reference
- Credit review and agreed security
- Confirmation, settlement and payment terms
Connect the trade to its operational follow-through
Commercial agreement is the beginning of a delivery process. The parties need a shared understanding of confirmations, required data, operational contacts and the treatment of corrections. Access to a specific venue, product or delivery arrangement is verified for each proposed scope.
- Named commercial and operational contacts
- A documented confirmation process
- A clear approach to discrepancies and corrections
Different horizons. Different execution contexts.
Wholesale requirements can concern bilateral physical agreements, day-ahead delivery or intraday adjustments. Each has its own product definitions, timetable, financial security and confirmation process. We structure the discussion around the intended horizon and verify the applicable venue registrations before representing a trade as executable.
- Bilateral and physical forward-contract discussions
- Day-ahead and intraday requirements
- Venue, credit and operational prerequisites
Compare proposals on the same basis
Two offers are comparable only when their delivery and cost assumptions are aligned. A useful comparison records the price basis, interval profile, applicable tolerances, payment dates and security requirements in one place. Before moving to confirmation, the parties can identify which terms are agreed, which remain indicative and which depend on further checks. The aim is a decision that can be explained through its complete terms, not through a headline price alone.
- A consistent delivery and pricing basis
- Explicit costs and payment obligations
- Outstanding conditions before confirmation
A practical starting point
What to prepare.
You do not need a perfect data room to begin. A concise description of the requirement and the information below will help focus the first conversation.
- Legal entity and business activity
- Buy or sell requirement
- Delivery dates and estimated volume
- Preferred commercial structure
Useful questions
Before we begin.
Can we discuss a single transaction?
Yes. An initial discussion can focus on a specific purchase or sale requirement. An executable proposal depends on the product, market arrangements and counterparty assessment.
Does a discussion commit us to a trade?
No. A commercial transaction requires agreed terms and the applicable confirmation or contract. An enquiry is only the starting point.
Let’s start with your requirement.
Tell us what you need to buy, sell or structure. We will clarify the information and next steps relevant to the discussion.