Energy Balance: Combining forward and spot markets

Model

Combine hedging and market supply

The model combines plannable elements with short-term procurement. It is suitable for companies that want to actively manage consumption, budget and market risk.

Model

Combine hedging and market exposure

The model combines plannable elements with short-term procurement. It is suitable for companies that want to actively manage consumption, budget and market risk.

Secure a share earlyA share of the electricity demand is procured in advance.
Take advantage of short-term pricesA further portion is based on the short-term market.
From 2,000 MWhThe offer is aimed at companies with high consumption volumes.

Classification

For companies with high consumption volumes

Energy Balance is aimed at companies with consumption of more than 2,000 MWh and at energy supply companies.

Energy Balance is the most active of the four models: you combine long-term hedging on the futures market with an open supply component of any size, which is procured on the spot market. You are free to decide how to split this mix. You procure futures market products – standard products such as Base and Peak or profiles – from BKW or from third parties. The difference between your futures market position and your actual consumption is settled transparently at spot prices and either charged or credited.

Models

Two models: Flat and Transparent

The models differ in terms of who is responsible for the forecast and how balancing energy is billed.

Balancing energy arises when forecast and actual electricity consumption differ from each other in any given quarter of an hour.

Energy Balance Flat

Description: BKW prepares the day-ahead forecast. Balancing energy is covered by a flat fee based on the load profile total – with no risk for you. Advantage 1: From 2,000 MWh or for energy supply companies Advantage 2: Flat fee for balancing energy Advantage 3: Multi-supplier capable

Energy Balance Transparent

Description: You are responsible for the forecast yourself: the more accurate it is, the lower the effective costs for balancing energy. As a BKW customer, you benefit from the nesting effect of the BKW balancing group. Benefit 1: From 30,000 MWh or for energy supply companies Benefit 2: Optimise balancing energy costs Benefit 3: Also for companies with large production plants

Frequently asked questions

Questions about Energy Balance

Answers on balancing energy, tenders, procurement strategy and billing.

Balancing energy arises when there is a difference between the forecast and actual electricity consumption per quarter-hour. It maintains the balance in the electricity grid. The tariffs are set by Swissgrid AG in accordance with the applicable statutory provisions and the regulatory requirements of ElCom; they are public.

Yes. With Energy Balance, you can carry out a tender for every forward-market procurement, including a public one. The process is supported digitally via the customer portal and the business partner Enmacc – relevant if you are subject to public procurement law.

First analyse consumption and requirements so that you can assess the coming years. Then decide which futures market products are suitable and whether you should plan for an open supply component. Spread price risks through partial procurements over several years and monitor market movements regularly. BKW will support you with this on request.

The forward market, spot market and balancing energy are billed transparently on a monthly basis; individual invoices may be delivered at a later date. Purchases from third parties are invoiced to you directly by these service providers.

With Energy Balance, you combine the futures market and the spot market. You choose how much you want to hedge over the long term and how much remains open. The difference between your futures market position and your actual consumption is settled transparently at spot prices.

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Energy procurement Switzerland

Where and how can I buy electricity as a company?

Companies in Switzerland procure electricity via the futures market or the spot market. Prices on the spot market fluctuate between –500 and +3,000 EUR/MWh. Those who involve multiple suppliers and combine both can manage their procurement costs in a targeted way.

With Energy Balance, you choose for yourself how much you secure in the long term and how much remains open:

Futures market products you purchase from BKW or from third parties by tender.
BKW transparently bills the open supply share at spot prices .

Energy Business Portal

What Energy Business can do

The digital Energy Business portal brings together everything you need for your procurement. From up-to-date daily market prices and load profile visualisation to digital tenders.

Unsure how to structure your electricity procurement? BKW supports you in developing a procurement strategy and advises you on tactical decisions. Contact your customer advisor directly.

FAQ

Frequently asked questions about energy procurement

The procurement timing is crucial for the energy price of standard products on the futures market. The energy price is subject to significant fluctuations on the market, which depend on various factors such as supply and demand, weather conditions, geopolitical events and other influencing factors. By skilfully choosing the procurement timing, potential price advantages can be exploited. With the Energy Balance procurement solution, you can optimise your energy price even further through a multi-supplier strategy or tendering.

The spot market is the day-ahead market on which electricity is traded for the following day. This is where supply and demand come together to determine the current spot price. The spot price is established by combining forecasts of electricity supply and demand, weather forecasts, planned maintenance work at power plants, etc.

The spot price can vary significantly and is announced the day before at 11:00 for the following day. As the spot price depends on various factors, it cannot be predicted precisely. Under the processes of the spot exchange, the price range for the Swiss market currently extends from –500 to +3,000 EUR/MWh. The current prices are publicly available on EPEX SPOT.

Balancing energy arises when there is a difference between the forecast (day-ahead) and the actual electricity consumption per quarter-hour. When this difference exists, balancing energy is used to maintain equilibrium in the electricity grid. In Switzerland, the tariffs for balancing energy are determined by Swissgrid AG in accordance with the applicable legal requirements and the regulatory provisions of the Federal Electricity Commission (ElCom). These prices are public.

Market information: daily market prices and curves for electricity, coal, gas, CO2, exchange rates, as well as daily market commentary from BKW trading.
Market reports: monthly market report for a comprehensive overview of current market activity.
Visualisation of load profiles: period-based visualisation and evaluation of measurement time series/metering points in load profiles.
Invoices and contracts: documents can be viewed and downloaded as PDFs.
Energy procurement: digital shopping list with the option of direct conclusion or enquiry to BKW for the purchase and sale of standard electricity products and profiles; price indication and changes for each item; price alert by email and SMS.
Reporting: online reporting with an overview of energy positions and costs by delivery year.

Start by analysing your electricity consumption and requirements so that you can better estimate your future needs over the next few years.
Decide on the type of forward market products that are suitable for your procurement strategy and whether you would like to plan for an open supply share.
Spread price risks by carrying out partial procurements over a period of several years.
Regularly monitor market movements and adjust your purchasing strategy if necessary.

With the Energy Balance procurement solution, you have the option of issuing a tender for each futures market procurement. This process is supported digitally by our customer portal and our business partner Enmacc.

With the Energy Balance product, the difference between your forward market position and your actual consumption is transparently billed at spot prices. Under the transparent model, part of this is charged at Swissgrid AE tariffs.

Yes. With the Energy Balance procurement solution, you can freely choose your mix of forward market hedging and open supply share (spot).

Yes. BKW also offers these services. Contact your customer advisor to find out more.

With the Energy Balance product, the futures market, spot market and balancing energy are settled transparently every month. It is possible that these invoices may be delivered at a later date. Futures market procurements that you have carried out with third parties will be invoiced to you directly by these service providers.

Our key account managers will show you which model suits your consumption and how you can reduce your procurement costs in concrete terms.