The volatility of the power market prices in recent years, together with squeezed margins, has highlighted the risks within retail sales. A key to reduced risk is increasing the efficiency of pricing and hedging.
The difficulty in evaluating specific customer profiles and the power market’s standard products causes many retailers to take unnecessarily large risks. Axpo has for a long time offered and developed Axpo Price®, an Internet-based pricing and hedging tool that gives you the ability to optimally manage these risks.
This high-performance, user-friendly system support is developed for, and in collaboration with, electricity retailers in the Nordic countries. Axpo Price® gives your business access to an efficient procurement model that minimises risk and maximises competitive advantage.
With Axpo Price® you can calculate and price different customer profiles at current market prices throughout the Nordic region. The customer’s profile is calculated down to the hourly level, which gives the best offer price. Axpo Price® allows you to hedge sold volumes directly in the system – with the right volume, currency and price area, and without timing risk. The hedged price is profiled according to the monthly baseload profile, which secures the margin.
Axpo assumes the market liquidity risk. This enables you as a retailer to hedge market prices for the current year plus five years ahead, even if liquidity is low further out on the curve.
Axpo Price® contains many supportive functions such as price monitoring with alerts via SMS and email, price lists, calculation and hedging of electricity certificates for small and odd volumes, etc.
The system is also a database where you can save different customer profiles for later use. It is also possible to create customised reports using the information from this database.
A Nordic retail electricity market will be implemented by 2015. NordREG, the cooperative organisation of the Nordic regulatory authorities, has established a detailed roadmap outlining all necessary actions. NordREG is developing the final market model in dialogue with the market players.
Axpo Price® is already prepared for a joint Nordic retail market, which means you are able to sell electricity, calculate prices and execute price hedging throughout the entire Nordic region.
When we switched partners, we made a thorough survey and met as many as ten players. Axpo was clearly the best option, top quality throughout. Professional, competent, good analyses, timely feedback and, above all, flexible in their solutions. Their easy to use pricing system Axpo Price, which we can also use to hedge both electricity forwards and certificates, was also a positive factor. Furthermore, we grow together as they are not a competitor in the retail market. We are very satisfied with our collaboration.
Corporate sales, Karlstads Energi
We’ve been working with the same people at Axpo since 2002 and feel a great sense of security with their knowledge and abilities. One can always call or email them about anything related to the electricity market and expect a swift answer. They care about our business and provide good advice with accurate analyses and forecasts. And they don’t compete with us over our customers. Axpo Price is a practical tool with many functions that help us a lot in our daily work.
Sales leader in electricity sales at Varberg Energi
We have a long relationship with Axpo and are very pleased with the closeness and openness of our cooperation. We have a weekly follow-up and it is also easy to communicate with them and get fast answers in between. They are receptive to our requests and competent in their market analysis. Plus, Axpo Price is an excellent tool for our needs.
Electricity sales manager at Tranås Energi
I have worked with Axpo for five years; two years at my previous place of work and three at my current one. Cooperation is very smooth with a price information meeting via telephone once a week. If other issues should arise in between, I call my contact in Malmö. I always receive a good and prompt response. And because Axpo is linked to a large Swiss company, we continuously receive valuable information about the international electricity market as well.
Electricity trader at Halmstads Energi och Miljö.