Axpo Italia. Top Customers

Transcription

1 Axpo Italia

2 Strategic Energy Partner Axpo Italia is the ideal partner for large industrial enterprises to successfully face the energy market (electricity, gas, CO2 quotas, green certificates, energy efficiency certificates and COFER) thanks to the range of innovative solutions offered. Axpo s success is the result of many years of developing and offering products and services that have enabled its customers to efficiently manage their energy supply portfolios. What does Axpo Italia currently offer TOP Customers? Axpo Italia has put together a series of basic offers for the supply and resale of electricity and gas and an array of solutions to go along with the supply that enables performance of the contract to be enhanced within the context of an integrated and dynamic energy supply management system. Who are TOP Customers for Axpo Italia? They are industrial companies or groups who consume significant amounts of electricity - network or self-produced - and/or gas. For this type of customer energy is always an important part of their production costs in both absolute and relative terms and is a critical factor for ensuring competiveness on national and international markets. How is Axpo Italia organised for TOP Customers? Customers are an asset for Axpo Italia and a direct and personal relationship enables special needs to be listened to and catered for. Customers are managed by an individual Key Account Manager (KAM). Special attention is paid to the precontractual phase, which serves to get to know the characteristics, key issues and needs of the customer business. Customer care does not end with supply. Of fundamental importance is the post-contractual phase, when Axpo Italia representatives work alongside customers to facilitate optimum management of their contract. To this end Axpo provides services (daily curves* and assistance with forecasting) and furnishes reports, both specific (e.g. profile analysis, cost analysis and Profit & Loss statements) and general (for example, final figures, forward prices and alerts). PERSONAL AND DIRECT RELATIONSHIP WITH THE KAM MONITORING OF MARKET TRENDS AND ASSESSMENT OF OPPORTUNITIES PRE-CONTRACTUAL ACTIVITIES POST-CONTRACTUAL MANAGEMENT INTEGRATED AND DYNAMIC ENERGY SUPPLY MANAGEMENT EFFECTIVE STRATEGIES INNOVATIVE SOLUTIONS * non-fiscal hourly consumption data published daily

3 APM - Active Portfolio Management Power Axpo Italia was the first in Italy, back in 2008, to offer electricity portfolio management by devising an APM contract, the internal processes dedicated to hedging a customer s positions, the tools to support contractual management, billing and all of the appropriate operational flows. Today, the company is the acknowledged leader in Italy for this contract type Hedging Portfolio The customer s electricity portfolio is managed by Axpo Italia as an asset from which value can be extracted. The structure of APM Active Portfolio Management contracts together with the analytical and reporting tools associated with those contracts permit the efficient application of the strategy agreed between the KAM and the customer for acquiring the electricity necessary for the plant or for selling surplus self-production. The aim of the flexible and customised APM contracts is to capitalise on the opportunities that arise in forward electricity markets and to minimise the risks associated with price volatility Volumetric optimisation of the profile facilitates decisions to split the electricity portfolio into base load portions, which allows one to progressively and profitably operate on forward markets through purchase and/or sale transactions. Forward of the prices during the year MW The Customer s Power Consumption Forecast Modulation A High Prices Low Prices I Quarter Floating for Fix Index It1 PEAK II Quarter Floating for Fix Index It5 OFF PEAK II Quarter Floating for Fix Index It2 II Quarter Floating for Fix Index It2 PEAK July - August Fix Price OFF PEAK III Quarter Floating for Fix Index It4 III Quarter Floating for Fix Index It3 VI Quarter Fix Price Year A - 1 Year A t

4 ADM - Active Demand Management Power Active management can also relate to the hourly load profile when the plants have sufficient margins of flexibility. Through ADM Axpo Italia guides the plant s load, with or without self-production, positioning it with great precision in the periods with the most economic prices. How it works: The customer has the flexibility to reduce the hourly load by a quantity Q Axpo/customer set the strike price S at which the consumption can be reduced Axpo selects a new profile net of the Q reduction Hourly Profile Spot Fixed Import 60 Consumption on day d-1 Axpo submits IPEX a purchase offer without a price limit for the remodulated curve (profile - Q) and purchase offers with an indication of price equal to S for quantity Q the load schedule for day d is known once the market closes on d-1 (12 a.m.) Hourly Price Strike Price Power & Gas Portfolio Management The management of a portfolio, whether it be an electricity one, involving the withdrawal or injection of electricity, or a gas one can be backed up by options that Axpo Italia devises on a case by case basis. Options can take many forms (Asian Cap and European Cap; Participating Cap; Zero Cost Collar; Spread Options; Market Option; etc.) to offer an adequate response to each Client s greater or lesser appetite for risk. Axpo Italia s Trading Desk is very active on forward markets for CO2 certificates, TEE (energy efficiency certificates), COFER (certificates of origin for renewable energy power plants) and in trading Green Certificates. Any customer need relating to costs and profit items in connection with energy will always be closely examined by Axpo Italia, which is able to suggest effective strategies and guide the customer s choices towards innovative and brilliant solutions.

5 APM - Active Portfolio Management Natural Gas APM Gas is the only contract that allows one to physically use the capacity allocations obtained by the customer and to associate them with progressive purchases on forward and spot markets (PSV, TTF), including from third parties, up to coverage of 90% of expected consumption and to this settle the remainder on the PB Gas balancing market. Only recently have the conditions been created to identify a veritable gas portfolio in the customer s natural gas consumption. Thanks to the experience it has gained on the electricity market Axpo Italia was able to present an APM Gas contract at the beginning of That contract enables one to profitably exploit the opportunities offered by the law (Virtual Storage and Capacity Gas Release) and the market for balancing services (PB Gas), which was introduced in December 2011 and which, thanks to a high degree of liquidity, is a clear and public reference point for natural gas prices in Italy. PB-GAS: Gas Balancing Platform The natural gas balancing platform (PB-GAS) is managed by the energy markets operator GME pursuant to Resolution ARG/gas 45/11. The PB-GAS allows Snam to balance the gas system daily through accepting purchase and sale bids compulsorily submitted by operators (storage service users) The bids are selected by market mechanisms through a daily auction. The results are published by GME by a.m. on the gas day following that of trading on the website. APM GAS: An open contract The gas portfolio (consumption forecast) will be satisfied first by the natural gas underlying the allocation of the capacity for Virtual Physical Storage and Capacity Release. Gas Consumption Forecast PB-GAS Therefore, before delivery, bands or profiles of Take or Pay capacity will be purchased for all or part of the supply period (quarter, single months) at a price that is fixed (PSV) or index-linked (oil, TTF, other). PSV (20 Mw) PSV (5 Mw) TTF + Spread (10 Mw) PSV (10 Mw) PSV (10 Mw) Consumption greater than or in excess of the Take or Pay capacity will be settled on the PB-GAS balancing market. PSV (10 Mw) Capacity Release (10 Mw) Virtual Storage (10 Mw) Period T Period T* t

6 Axpo Italia SpA Headquarters Via Enrico Albareto Genova T / F Presidency & Institutional Affairs Via IV Novembre Roma T / F Axpo Gas Service Italia Srl Offices in Milan Via Di Vittorio Peschiera Borromeo (MI) T / F