鬼武者2スロット of ETRM System for the Electric Power Business

Overview

1. Energy trading and risk management (ETRM) refers to various transactions and risk management related to electricity and fuel (coal, oil, gas, etc.).

Purpose

　鬼武者2スロット amount of risk in 鬼武者2スロット power business has increased due to 鬼武者2スロット large fluctuations in fuel market prices and electricity market prices in recent years. In response to this situation, 鬼武者2スロット Ministry of Economy, Trade and Industry (METI) published guidelines on market risk management ² targeting electricity retailers and power generation companies.
As an electricity supplier engaged in both power generation and retail, Osaka Gas has been working to quantify and visualize risk but has faced challenges such as 鬼武者2スロット difficulty of dealing with increasingly complex transactions, rising operational costs, and 鬼武者2スロット dependency of work on individual tasks. We have developed this system to further enhance our risk management.

2　Guidelines for Market Risk Management to Ensure Stable Electricity Services for Communities and Consumers (revised on March 31, 2022)

ETRM System Functionality

鬼武者2スロット ETRM system consists of three functions: risk management, transaction information management, and offer management. 鬼武者2スロット risk management function calculates 鬼武者2スロット amount of risk in electricity trading (expected balance, balance fluctuation amount, etc.) based on various kinds of input information. 鬼武者2スロット transaction management function registers information on completed transactions and uses it as input for risk calculations while also managing credit and calculating and managing settlement amounts.

Rendered image of 鬼武者2スロット functionality of 鬼武者2スロット ETRM system

3. 鬼武者2スロット “position” quantitatively clarifies transactions whose quantities and prices are fixed and those which can fluctuate and quantifies 鬼武者2スロット amounts subject to future fluctuations in 鬼武者2スロット market prices of fuel and electricity.

4. EaR is 鬼武者2スロット abbreviation for earning at risk. VaR is 鬼武者2スロット abbreviation for value at risk. It is a quantification of 鬼武者2スロット extent, and 鬼武者2スロット probability, of loss that may occur if prices fluctuate in an unfavorable direction for 鬼武者2スロット company, based on past performance and assuming 鬼武者2スロット probability distribution of future market prices.Each is utilised for risk management in 鬼武者2スロット power generation business and trading operations.

Effects

鬼武者2スロット ETRM system makes it easier to manage and report on 鬼武者2スロット risk of fluctuations in income and expenditure due to fluctuations in fuel prices and electricity trading prices, as well as to perform risk management and reporting for 鬼武者2スロット trading book. In 鬼武者2スロット future, we plan to further improve 鬼武者2スロット system with 鬼武者2スロット aim of enhancing transaction management and risk management.