Strategic Energy Management to Mitigate RisksBy Dalia Maria de León | Wed, 04/29/2020 - 16:51
Q: What added value does the company provide the Mexican market?
A: Acclaim energy is a consulting company that provides value to the end consumer by uncovering opportunities and risks within strategic energy management. We give our clients the tools to make informed decisions regarding their energy budgets. Our added value relies on the transparency of our processes and a clear open mindset while working with our clients.
Q: What are the main concerns your clients have?
A: Some of the main concerns are the government’s policies and the way those could affect clients if they switch suppliers. Another main concern that has been expressed to us is that clients are not receiving the same attention from CFE even though they are still receiving a portion of the energy from them. There is a lot of misinformation and our role is to inform our clients of the actual reality and how to mitigate any risks to maximize the opportunities that they have in a regulated market.
Q: What has been Acclaim’s main achievement?
A: We are managing almost US$3 billion in energy a year for more than 500 clients located in the US, Canada and Mexico in both electricity and natural gas. I think our greatest achievement in Mexico is successfully having over 30 clients with supply contracts already executed. Most of them are already saving between 15 and 40 percent on their electricity bills.
Q: What services do clients most want from Acclaim?
A: We basically are a one-stop shop. Most of our clients hire us from start to finish. We perform analysis of load and consumption profiles, market option sophisticated evaluations, which entails translating the results in understandable terms for all company leaders and their staff, contract negotiations and requirement coordination. Finally, once supply kicks in, we manage the price risks in the contracts derived from price fluctuations and audit the bills every month to ensure savings ar materialized. We provide them the tools and market data to manage contracts strategically. We can get involved in any stage of the process in order to solve contractual issues.
Q: What does Acclaim require from its clients to provide them the best service?
A: Obviously, five-minute interval data would be ideal to have in order to more accurately set up a historical and projected consumption profile. However, most companies in Mexico do not have smart meters yet. Once the consumer begins supply from a private company, they must have these meters already which we help coordinate. To deliver our ongoing service, from these meters we are able to extract and read specific data, which is used to correlate with the bills and link them back to the terms and conditions of the contract.
Q: What is the most challenging stage a client might face during the implementation process?
A: Coordinating all elements to begin supply as quickly as possible and managing the actual supply contract. Once they switch suppliers, the main concern is to avoid economic impacts that could be caused by a lack of price-risk management. Several companies have signed supply contracts and never achieved the results they expected. They come to us with contracts that were signed years ago where they never achieve projected savings due to lack of understanding or proactive management. In this case, we create optimizations to maximize benefits and reduce risk.
Q: What is Acclaim’s strategy to mitigate risks and generate savings?
A: Our strategy is to identify our clients’ specific load and risk profiles as well as corporate requirements to create short- and long-term business strategies that meet their needs. We have clients all across Mexico, which also bring geographical elements to the table such as congestion risk and nodal pricing. For example, with COVID-19 there are manufacturing plants that are either decreasing production or closing down, so we need to figure how to help our clients during these difficult times. Managing energy spend will be one of the most strategic elements to help crisis.
Q: What impact has the COVID-19 pandemic had on your projects and operations?
A: COVID-19 is impacting many manufacturing companies which results in a production decrease. Many of these companies are already in supply contracts. We analyze their supply contracts to make sure they are managing the situation properly under the commercial and technical optionality that many of them have. We need to focus on their energy budgets so that results are optimized. Our focus this year is to survive this pandemic, reducing costs while generating sales. We believe many companies will need our services to verify their supply contracts and have more control over their energy budgets. There is a lot to do and we want to help organizations as much as possible by giving them the tools and help them make the right decisions.
Acclaim Energy Mexico is part of Acclaim Energy, a consumer advocate that helps businesses minimize total energy costs and unlock value through a proven integrated energy management approach.