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Energy | Strategy: what's the best way?

Energy | Strategy: what's the best way?

Two emblematic cases of electric utilities.

One in which two right next door neighbors - a factory and a mall in the south of São Paulo (Brazil) had simultaneously decided to change their contracted demands. Coincidentally at the exact same value. The factory wanted to reduce and the mall to increase.

The utility informed each of them that they needed to wait for the regulatory deadline (6 months) before the contracted demand could be changed. As a result, the mall had to contract generators - which produced much more expensive energy than the concessionaire - to enable the inauguration of a new building. The factory had to pay for idleness (excess demand) for many months. Everyone lost. Even the concessionaire - if "promptly" exchanged the contracted demands would have increased its revenues by selling more energy with the same total demand.

Another case, in which the concessionaire, in the Midwest (Iowa-USA), learned that a large industrial customer would be ready to terminate its activities there. The concessionaire's CEO arranged a meeting with the client's CEO and found out what the problem was and presented 3 weeks later a solution that was accepted by the customer - which allowed him to continue to operate at that location!

What is the strategic difference between the two cases?

To find out the answer and especially to look for new opportunities to create solutions and expand business in the power arena, contact me to request a presentation.

Rafael Herzberg's picture

Thank Rafael for the Post!

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Dr. Amal Khashab's picture
Dr. Amal Khashab on Oct 11, 2019 8:24 pm GMT

Strategic difference is geographic one . USA is North American country , while Brazile is South American country. This is the big North - South difference. I am not sure that meeting with you will not change Brazilian situation.

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