What We Faced
Challenge
Our Super Major client acquired a substantial retail gas and power business. The challenge was to separate and duplicate the existing wholesale and retail business operations, both running on the same Endur ETRM platform at the selling client, into two distinct ETRM environments. The acquiring firm initially contemplated a new, extensive Endur implementation. Additionally, managing the complexities of ISO Settlements, involving approximately 100 market participants and diverse settlement calendars, required a robust and integrated solution. Training the buyer’s offshore team on ISO settlements and ensuring user adoption of the implemented system were also key considerations.
Implemented Technologies
ENDUR v18
What We Did
Solution
MRE Consulting designed and implemented a strategy to clone the existing Endur ETRM system, providing both the seller and the buyer with independent copies. This involved:
- Cloning the ETRM Environment: Creating standalone instances of the Endur system for both the seller and the buyer.
- Splitting Intercompany Transactions: Converting intercompany transactions into external deals within each respective platform.
- Data Redaction: Removing proprietary data relevant only to the seller from the buyer’s cloned environment.
- Implementing Customized ISO Integration: Deploying MRE’s tailored Endur ISO Integration solution to automate the processing and reconciliation of daily ISO invoices, encompassing numerous charges per Market Participant and operating date, directly linking to P&L and portfolio allocation.
- Providing User Training: Conducting training sessions for the client’s offshore settlement personnel on ISO settlement processes and the utilization of the new system.
- Ongoing Support: Delivering daily support for the newly implemented retail ETRM environment.
Following the successful separation of the retail ETRM system, MRE was engaged to plan the upgrade of the client’s wholesale power business from Endur v18 to v24, aiming for a consolidated platform with reduced maintenance costs.
What We Delivered
Results
By providing a functional and configured ETRM solution for the acquired retail business, MRE enabled both the buyer and seller to meet their immediate objectives, allowing them to concentrate on their long-term business strategies. The buyer can now integrate their existing wholesale power business onto the upgraded platform with informed decisions, unlocking potential long-term value.
- The buyer avoided an estimated $30 million in costs that would have been required for a new Endur implementation by acquiring an already configured platform. The future upgrade of the wholesale business to Endur v24 is projected to save an additional $20 million compared to their initial power implementation plans.
- The seller could redirect their focus towards optimizing wholesale trading performance. The retail buyer achieved and exceeded their year 1 growth targets.
- Timely Transaction Closure: The implemented system solutions facilitated the timely closing of the sale, meeting the objectives of both parties.
- Future Platform Consolidation: The ongoing project to migrate the wholesale power business to the upgraded Endur v24 platform will result in a consolidated environment with reduced maintenance costs.
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