Montel Price Forward Curves: Powering Midas Energy

“What we offer is flexibility and control, which is what is needed more than ever in volatile energy markets. It is a must-have to be able to maintain or increase your market position.”

As Thomas and Heidi explain what Midas Energy do, it becomes immediately clear that the business is here to help under pressure trading desks across the energy industry with portfolio management and business intelligence.

Selling electricity to end consumers is highly competitive. With so many factors beyond wholesale costs making up the end price for customers, it is now crucial for contract and portfolio managers in utilities across Europe to be able to price agreements quickly and accurately.

This has never been more important. The high financial risks involved in energy trading in combination with more time consuming workflows have put energy suppliers´ margins on gas and electricity contracts under increased pressure during the energy crisis.

This is where Montel Price Forward Curves (PFCs) come in, used as part of Midas’ integrated energy sales. Once a contract is entered in Midas based on PFC’s with real-time prices from energy exchanges across Europe, data for the trading and billing systems are available in real-time.

For Midas’ customers, if they want to trade with different electricity suppliers for example, they can use the data from the PFCs to be confident in having reliable and trustworthy real-time energy prices. They are also then able to use live updating price quotations in order to hedge customer portfolios effectively, or even purchase power at prices pre-defined by customers.

Montel PFCs can also be used in this scenario to price deviations. Where a customer liquidates in the middle of a contract, any energy purchased for that agreement needs to be sold back to the market. You can then use them to see whether you are set to win or lose based on current market prices, or even discover when the optimal time to sell would be.

Thomas sums things up easily when he says “seeing where gas and power prices will be in future is what enables us to say we are helping our customers to minimise price-risk and make them more profitable. We could not do that without Montel PFCs.”