Reports ETRM in a Low Commodity Price Environment | Page 5

ETRM in a Low Commodity Price Environment

ago, are less likely to view this issue as being as a significant
challenge to their current systems.
Europeans ranked Lack of Functionality as their third
greatest challenge, much higher than the North Americans,
who placed it next to last. Again, this may be related to the
emerging power markets in the European region and the gen-

eral relative immaturity of that market as compared to North
America. While many of the regional European markets are
similar in their construction and operation, there is as yet no
single operational or business model for the continent and as
such, operating in multiple markets in Europe does require
certain specific functional capabilities for each.

Q: Please rate ETRM capabilities in terms of Importance given in the current commodity price environment.

North American respondents clearly ranked Risk Reporting as the most important capability given the current market
conditions. Europeans noted Risk Reporting below Trading
Optimization, and of approximately the same importance as
Logistics/Scheduling Optimization, Intraday Capabilities,
and Asset Optimization. Again, the European respondents
appear to be expressing experiences and concerns related
to the emerging power markets across the continent. As the
North American power markets are more mature and generally operate utilizing similar models, the issues faced by European power market participants are less of a focus in North
America.
Both geographies ranked Treasury and Asset Management surprisingly low, particularly in light of the balance sheet
and cash management issues faced by many participants in
this low commodity price market. One possible explanation
for this ranking is that many are utilizing systems other than
ETRM/CTRM to manage these exposures.

Risk Reporting
Logistics/Scheduling Optimization
Trading Optimization
Data Aggregation/Data Management
Risk Analytics (VaR, M2M etc.)
Regulatory Reporting
Asset Optimization
Intra-Day Trading Capabilities
Credit Risk Management
Overall Efficiency - Consistent UI, STP, etc.)
Treasury Capabilities (cash flow
management, balance sheet exposure etc.)

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Asset Management

Europe

1.00 Improtant
1.20
1.40
1.60
1.80
2.00
2.20
More
Less Important
More Important
Less Important
North America
Total

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