KyStrategy - Energy Purchasing Strategies

KyStrategy software calculates potential cash-flow distributions for different energy purchasing strategies. The model is developed as support tool for sales departments for utilities/energy companies, for advisors, and for individual end-users.  Next to the more common qualitative judgement, KyStrategy quantifies the potential impact of the most common sourcing strategies.

Inputs for the strategy tool are:

• Customer profile (for gas on daily basis, for power on hourly basis)
• Monte Carlo Price simulations
• A purchasing strategy (see below)
• Already purchased positions (including price)

Multiple possibilities to purchase power and gas

The potential distribution of the following sourcing strategies can be calculated:

• Fixed Price
• Floating Price (daily spot)
• Average Forward Price (purchase based on an average forward price)
• Split Purchase (purchase based on pre-defined days, independent from the price development)
• Stop-loss (purchase where part of the total volume is purchased when the increase of the contract price exceeds a pre-determined threshold)
• Collar (purchase with floors and/or caps)
• All possible combinations from above

Quantify impact of commodity sourcing possibilities

• Expected cash flow
• A distribution of potential cash flows
• A comparison between various purchasing strategies