How can REBO improve your wholesale-to-retail operations?
Because we have background in both the retail and wholesale areas,
we can help the wholesaler understand and manage the risks associated
with retail sales, and help develop new products and services. For managing
the volumetric risk of retail sales, we offer products and services
to better manage short term and long term positions and to aid in scheduling.
REBO can help you develop and implement new products for your retail
clients or to enter new markets.
Consider the following questions, and whether the services we offer
might benefit you:
Forecasting
How well do you understand the retail loads
you are following for your wholesale-to-retail customers?
Accurate assessment and forecasting of retail electric loads is
often outside of the wholesaler's core competency, and this
is why our services are valuable to energy companies selling bulk
supplies to energy retailers. REBO understands retail load forecasting,
and we have successfully worked with a number of bulk power
suppliers to improve their ability to manage wholesale-to-retail
electric loads. In particular, our temperature correction equation
sets will significantly improve the accuracy of most load forecasting systems.
What's more, we can provide top-to-bottom load forecasting system development
and improvement services for those providers that lack these capabilities.
Business Expansion and Improvement
Are you reluctant to expand wholesale-to-retail
sales because you are not comfortable that you understand the market
well enough?
By utilizing our expertise and experience,
you can build the capabilities to profitably and reliably expand your
services in the wholesale-to-retail market.
How accurately are you pricing wholesale-to-retail
accounts? How is this affecting your competitiveness and your ability
to sell value-added services to retailers?
It is our experience that wholesalers generally tend to overprice
the optionality or shaping premium associated with retail load.
This overpricing hurts the competitiveness of the retailers you
are working with, which in turn reduces the competitive advantage
you might gain over other bulk wholesalers that do not provide value
added services to the retail market. The problem may be corrected
through a more precise understanding and modeling of ultimate end
use customer loads.
Overpricing may also drive retailers to "self-manage"
their loads – doing their own shaping and volatility risk
management. This means that you have left value on the table, as
retailers are doing work that you should be doing for them.
If you are providing credit support to your
retailers, how well do you understand the retailer's profitability?
How do you know the book you are supporting is profitable?
Wholesalers providing credit support to energy
retailers may rely on the retailer's assessment his margin and
risk profile, usually because the wholesaler does not possess adequate
understanding of retail loads to make this assessment themselves.
REBO can fill this gap by performing a thorough due diligence assessment
of the retail books you are supporting through our extensive knowledge
of retail loads and retail portfolio management.
Risk Management
Are there state or utility business rules that
increase your risk? Could you be responsible for serving your retailer's
customers if the retailer defaults?
Just as overpricing can reduce your competitive
position, not accounting for specific state regulatory or utility
business rules can increase your risk and put you in a position of
providing products or services for which you have no capabilities.
REBO can help you evaluate state and utility business rules and to
value them in your pricing.
Are some of your retailers interested in LMP
pass through pricing, but intimidated by the complexity involved?
Are you interested in expanding your product offerings to retailers?
LMP pass through requires converting all customer
and wholesale data to hourly values, allocating that data to individual
meters and summing the data to a customer's billing cycle. REBO
can provide you with a complete LMP billing service.