Energy Procurement for global High-Tech and Elektrotechnoqie Supplier in Czech Republic (2023) – KINECT ENERGY

DELTA ADVICE receives the order to take over the procurement of energy for electricity and natural gas from a world-leading high-tech and electrical engineering supplier with locations all over the world for the production facility in the Czech Republic. The company has been manufacturing components for more than 130 years with over 100,000 employees.

Every factory, every machine and every system contains components, controls and control technology from our customers.

After the year of the energy crisis, the global energy markets are recovering bit by bit. Energy prices have fallen under the price caps decided by the European governments and the energy products and price models on offer are more diverse again. Nevertheless, the markets are far from being in the situation they were in before the 2021/2022 energy crisis. These massive upheavals in the national energy markets have left many of the independent energy suppliers on the path of the sharp rise in energy prices and have gone bankrupt. The range of offers has been noticeably reduced and the terms of the offers are worsening for consumers.

During this time, more and more companies are looking for the support of consulting companies with a strong focus on the procurement of energy for global companies in order to be able to overcome the current difficulties with acceptable conditions. We can’t turn the market either, but our many years of work on the energy markets gives us a head start in the network and in personal contacts, so that we can fulfill the orders for our customers despite all the difficulties.

Strategic purchasing management is gaining in importance when purchasing electricity and gas

Now it is no longer enough to simply ask three suppliers and the energy costs are lower again than last year. A strategic component is becoming increasingly important in order to query the volatile market at the right time with the right measures.

  • Will the price change in the coming weeks.
  • Will we still get contracts at all.
  • What about security of supply.
  • Can we be cut off from electricity and gas despite the contract.
  • Which energy suppliers will survive this crisis and not get into trouble themselves.
  • Will there be government support for electricity prices (Price Cap)

We provide our customers with the answers to these understandable management questions.

With our many years of expertise, we procure primary energy (mostly electricity and natural gas) on the national energy markets in Europe as a service for leading companies in industry and business. DELTA EXERGY is the exclusive regional partner of one of the world’s leading energy specialists for the regions of the Czech Republic and Slovakia.

On behalf of the company, we plan energy procurement and advise on the ideal timing for procurement, depending on current market developments. We carry out the tender with our competence and our work tools.

  • Transparency
  • Effectiveness
  • Maximize competition
  • Design of the contract terms
  • Risk management

The result of the tender is presented to the company together with our professional recommendation for the management decision.

We then accompany the customer throughout the contract changeover to the new supplier.

DELTA EXERGY supports leading European companies in energy procurement in CZ & SK

Global or European industrial companies understand that the commodity energy must be procured just as professionally as all other direct consumer groups. Energy is bought differently than toilet paper and the cost lever is correspondingly high, so that there is a large efficiency lever in the right procurement that should be leveraged entrepreneurially.

Everyone needs energy for the smooth running of the business.

DELTA EXERGY and WORLD KINECT ENERGY are the right and efficient partners for this task.

Energy procurement for an automotive supplier with a plant in Slovakia (2023) – KINECT ENERGY

DELTA EXERGY receives the order to take over the energy procurement for electricity for a global automotive supplier for the production facility in Slovakia. The company manufactures components at over 100 locations in 30 countries.

The global energy markets have changed dramatically over the past 12 months. The prices had reached absolute peak values ​​this year and some customers no longer received any delivery offers from their long-standing energy suppliers.

During this time, more and more companies are looking for the support of consulting companies with a strong focus on the procurement of energy for global companies in order to be able to overcome the current difficulties with acceptable conditions. We can’t turn the market either, but our many years of work on the energy markets gives us a head start in the network and in personal contacts, so that we can fulfill the orders for our customers despite all the difficulties.

The start of the war in Ukraine temporarily brought the energy markets in Europe to a standstill. The plural markets with sufficient providers of different types and an adequate supply of electricity and gas on the trading venues are no longer foreseeable for the time being.

Strategic purchasing management is gaining in importance when purchasing electricity and gas

Now it is no longer enough to simply ask three suppliers and the energy costs are lower again than last year. A strategic component is becoming increasingly important in order to query the volatile market at the right time with the right measures.

  • Will the price change in the coming weeks?
  • Will we still get contracts at all?
  • What about security of supply?
  • Can we be shut off from electricity and gas despite contract.
  • Which energy suppliers will survive this crisis and not get into trouble themselves.
  • Will there be government support for electricity prices (price cap)

We provide our customers with the answers to these understandable management questions.

With our many years of expertise, we procure primary energy (mostly electricity and natural gas) on the national energy markets in Europe as a service for leading companies in industry and business. DELTA EXERGY is the exclusive regional partner of one of the world’s leading energy specialists for the regions of the Czech Republic and Slovakia.

On behalf of the company, we plan energy procurement and advise on the ideal timing for procurement, depending on current market developments. We carry out the tender with our competence and our work tools.

  • transparency
  • effectiveness
  • maximizing competition
  • Drafting the terms of the contract
  • risk management

The result of the tender is presented to the company together with our professional recommendation for the management decision.

We then accompany the customer throughout the contract changeover to the new supplier.

DELTA EXERGY supports the leading European companies in energy procurement in Slovakian Republic

Global or European industrial companies understand that the commodity energy must be procured just as professionally as all other direct consumer groups. Energy is bought differently than toilet paper and the cost lever is correspondingly high, so that there is a large efficiency lever in the right procurement that should be leveraged entrepreneurially.

Everyone needs energy for the smooth running of the business.

DELTA EXERGY and WORLD KINECT ENERGY are the right and efficient partners for this task.

Market Price Development for Electricity in Czech Republic in Year 2020

The commodity prices on EEX and PXE markets have been impacted by the Covid-19 pandemie in Czech Republic and Slovak Republic too. The following chart shows the development of Electricity market prices on PXE for Base Load in year 2020.

The major impact on commodity prices have been the Covid-19 pandemic shut downs in Czech Republic and the major supply markets in Germany and Austria in March 2020. The commodity prices have been dropped down by -20% of the market prices of beginning of the year and has floated between the value at beginning of the year and the minimum level in March 2020.
The optimistic outlook on the Covid-19 Pandemie after the certification of various vaccine, the industrial outlook into the future seems to quite driven by an optimistic scenario in national and international industry sectors.

The demand on Electricity seem to be increased and though the prices have been raised in the end of year rally.

Disclosure: DELTA EXERGY is not giving any guarantee on the correctness of the shown data. 
The use of the data is intended by information only. Please use for management and procurement 
desicions only data originined by CNB or other official sources. 
DELTA EXERGY is not taking any liability for missing data or incorrect data.

KINECT ENERGY informs customers and partners about the developments in the EU emissions trading ETS

The European Emissions Trading Scheme (EU-ETS) has been the EU's central climate protection 
instrument since 2005. With it, the greenhouse gas emissions of the participating energy 
industry and the energy-intensive industry.
In addition to carbon dioxide, laughing gas and perfluorinated hydrocarbons have also been 
included since 2013. The European Emissions Trading Scheme (EU-ETS) was established in 2005 
to implement the international climate protection Kyoto Agreement and is the central European 
climate protection instrument. Besides the 27 EU member states and UK have also joined 
Norway, Iceland and Liechtenstein EU emissions trading connected (EU 31). In the EU-ETS, 
the emissions across Europe are around 11,000 plants in the energy sector and energy-intensive 
industry are recorded. Together these plants cause around 40% of greenhouse gas emissions 
in Europe. Since 2012 the intra-European air traffic included in the EU ETS. ...
The EU-ETS works on the principle of the so-called "Cap & amp; Trade ". An upper limit (cap) 
sets determines how many greenhouse gas emissions from the installations subject to emissions 
trading in total may be expelled. The member states give a corresponding amount of emissions
authorizations to the systems - partly free of charge, partly via auctions. ...
The emission allowances can be freely traded on the market (trade). This forms a price for 
greenhouse gas emissions. This price creates incentives for those involved Companies to 
reduce their greenhouse gas emissions.
Source: German Federal Environment Agency

KINECT ENERGY Green Services is part of the worldwide WORLD KINECT ENERGY SERVICES

At the end of the year, a new phase begins in the EU ETS ( Emission Trading System ) for the period 2021 to 2030. The participants and obligated companies are preparing for this new section and fulfilling the obligations for the difficult year 2020 to at the end of March 2021.

The experts from KINECT ENERGY Green Services give a detailed overview of the expected developments in supply and demand due to various influencing factors such as the planned shutdowns in the coal industry and economic influences from the Covid-19 pandemic.

  • Anette Gussiaas : Director of Sustainability, EMEA @World Kinect Energy Services, Kinect Energy Green Services
  • Trine Braathen : Business Developer Environmental Markets @World Kinect Energy Services, Kinect Energy Green Services

Problems in the EU ETS

The EU ETS is an ambitious push towards more climate protection and climate justice in the key industries that are largely responsible for C = 2 emissions. The system is not perfect and has systematic weaknesses, but it is better than doing nothing and watching the global warming move closer and closer to the 2 ° target.

"As a result of less ambitious caps, crisis-related decreases in production and emissions and 
the extensive use of international project credits has increased a large amount since 2008
excess emission allowances accumulated in the EU ETS. These surpluses have substantial
contributed to the price decline observed for emission allowances between 2011 and 2017.
Prices have risen significantly again since mid-2017. In mid-2020 the price was around
23 euros.
Source: German Federal Environment Agency "

DELTA ADVICE and KINECT ENERGY GREEN SERVICES

DELTA ADVICE GmbH has been associated with KINECT ENERGY GREEN SERVICES since 2012. Together with the predecessor company of KINECT ENERGY – Bergen ENERGI – DELTA ADVICE has opened a partnership for the Czech Republic and Slovak Republic. DELTA ADVICE is the local and exclusive partner in the region and supports the handling of complex projects in the respective energy markets with local know-how.

Energy Procurement for global High-Tech and Elektrotechnoqie Supplier in Czech Republic (2021-2022) – KINECT ENERGY

Prediction of the Energy consumption of the next years is not easy for our clients. Many Impacts have to be evaluated for a right starting point of the Energy tender.

"The uplift on the Energy Exchange Price is for the supplier for his expenses,
his Profit, his insurancy, his Portfolio Management and his structuring cost."

Setting the Right conditions in the Energy procurement will directly influence the amount of uplift of suplliers price of Energy.

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Energy markets: Regulator Reporting for Electricity Market is delivered to Customers for the Czech Republic

Regulatory Reporting Services for Customers in Industry and Economy

Customers need an insight into the price structure of the regulated costs, prices and taxes and the management consultancy in order to be able to optimize each individual cost item with the regulated possibilities.

DELTA ADVICE GmbH creates the regulator reporting for the customers in partnership with WORLD Kinect Energy.

DELTA ADVICE GmbH has completed the reports on regulator reporting for the region of Czech and Slovak Republic for WORLD Kinect Energy customers. The reports are always updated during the year and made available to the customer for his work in energy management.

The customer crisis includes leading global and European customers from business and industry who design and optimize energy consumption in the energy markets in the Czech Republic and the Slovak Republic. Large customers and energy consumers need an up-to-date insight into the current laws, regulations and stipulations of the responsible Ministry of Economic Affairs, the regulatory authority and the market operator.

We regularly provide our customers with annual and mid-year contracts

  • a regulatory report for commodity electricity,
  • with all currently applicable fees, prices and taxes in the regulation,
  • an outlook on current topics in the country’s respective energy industry,
  • Analyzes to optimize the total energy costs in the respective commodity.

A special focus is on the Renewable Energies (RES / OZE) in the Czech Republic and the related taxes for electricity customers. The regulator reporting is created by DELTA ADVICE GmbH as a regional, exclusive partner for WORLD Kinect Energy.

Management advice does not include legal or tax advice in the Czech Republic and the Slovak Republic. DELTA ADVICE GmbH is the regional and exclusive partner at World Kinect Energy for the Czech Republic (CZ) and Slovak Republic (SK).

Selected references on the topic

Energy Procurement for global High-Tech and Elektrotechnoqie Supplier in Czech Republic (2020-2021)

Prediction of the Energy consumption of the next years is not easy for our clients. Many Impacts have to be evaluated for a right starting point of the Energy tender.

"The uplift on the Energy Exchange Price is for the supplier for his expenses, his profit, his insurancy, his Portfolio Management and his structuring cost."

Setting the Right conditions in the Energy procurement will directly influence the amount of uplift of suoplliers price of Energy.

Continue reading

Energy Procurement for a Global Player in High-Tech and Maschinery in Slovakia (2019)

For global Players, it is getting more and more important to have full process controll of procurement of all major commodities. Energy supply is a typical commodity and sourcing is getting more and more in focus of procurement Organisation. KINECT ENERGY and DELTA EXERGY can support the centralizes procurement of energy commodities for those global players.

One Global Player - one sourcing process.

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Energy Procurement for a Global Player in High-Tech and Maschinery in Czech Republic (2019 – 2020)

Fixed Energy volume versus flexible Energy consumption volume.

"What is the Business value of flexibility for industrial Energy consumers?"

Flexibility has a higher Price for the consumer, the Energy supplier has to hedge this additional Project Risk for his portfolio. We Help our clients to find the perfect Setup for his Situation and helping to save unplanned expenses in the yearly Budget plan on Energy consumption.

Continue reading

Energy Procurement for a Global Player in High-Tech and Maschinery in Czech Republic (2019 – 2020)

Fixed Energy volume versus flexible Energy consumption volume.

"What is the Business value of flexibility for industrial Energy consumers?"

Flexibility has a higher Price for the consumer, the Energy supplier has to hedge this additional Project Risk for his portfolio. We Help our clients to find the perfect Setup for his Situation and helping to save unplanned expenses in the yearly Budget plan on Energy consumption.

Continue reading