CGE&Y on Profits for Energy Producers

by Nigel B. Lewis

Fluctuations in energy demand can have severe economic consequences. Accurate prediction of these fluctuations enables producers to quickly adapt and plan for quantities months in advance to synchronize available supplies and negotiate more competitive energy trading agreements.

This is why Cap Gemini Ernst & Young Consulting (CGE&Y) has teamed up with SAS to create EDMOES, the Energy Demand Management Organization Exploitation System. Capitalizing on CGE&Y’s world-class consulting and extensive experience in the utilities industry, combined with SAS’ superior ability to access, extract and analyze data from any source to deliver predictive business intelligence, EDMOES holds the key to greater profitability for progressive energy producers.

CGE&Y reviewed a number of potential partners, but chose SAS because of its clear leadership in the predictive analytics market and its proven experience in implementing demand forecasting solutions. Because EDMOES is built with SAS technology, it is both flexible and extendible. What this means to our customers is that the solution can adapt to meet their changing needs and ensure their leadership in a dangerous marketplace.

In deregulated – and therefore now-competitive – markets, the risks are high and there is very little room for error when forecasting energy demand. Due to its superior forecasting accuracy, EDMOES significantly reduces this margin of error and allows clients to reduce the costs associated with energy balancing, pricing, customer acquisition and retention, and trading. A case study using EDMOES on real data demonstrated that even a 1 percent reduction in forecasting error margins could save an electricity supplier in the UK between £2 million (US$3.3 million) to £3 million per year.

Energy forecasting experts at CGE&Y Consulting understand the challenges facing your industry, and we are uniquely positioned to facilitate your forecasting success with EDMOES by evaluating your current strategies, your specific market conditions and customizing your implementation of EDMOES, quickly and efficiently.