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Your $/MWh in 7 questions

image credit: Rafael Herzberg
Rafael Herzberg's picture
Consultant energy affairs Self employed

Rafael Herzberg- is an independent energy consultant, self-employed (since 2018) based in São Paulo, Brazil* Focus on C level, VPs and upper managers associated to energy related info, analysis...

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  • May 24, 2022
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Your $/MWh in 7 questions

Companies and institutions always face the challenge of having their costs aligned with references that make them viable.

The energy bill is usually high on the cost list. It is usually Top 10, but often Top 5.

To ensure that in your case you are facing competitive benchmarks, the following questions must be addressed.

1. Is the price paid for electricity consistent with published prices for short, medium and long term future delivery?

2. Are other usable sources considered in your "energy matrix" and do they have attractive costs?

3. Is there an established cost arbitrage policy between sources so that a minimum total is always achieved and maintained?

4. How is price modeling done? Fixed, collar, spot and/or a combination?

5. How is the volume contracted: for the nominal plan of activities, for smaller or larger?

6. What metrics are used to find out if the market is offering attractive prices from each source?

7. Is there a systemic plan that defines criteria that must be observed when contracting and managing energy sources?

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Thank Rafael for the Post!
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