This liberalization is aimed at introducing supply competition in the electricity and gas price markets. Competition is supposed to benefit consumers through lower prices and by broadening the choice of available services.
In addition to affording choice to consumers, liberalization has also introduced complexity into the wholesale and retail energy markets. A consequence of the complexity of the wholesale electricity market is price volatility at times of peak gas demand and supply shortages.
Final consumers (large and small) are at the receiving end of these complexities. They can buy from retailers or directly from the generator (if their consumption is large enough). This competition creates the potential for lower prices and enhanced customer service, but it also creates complexity arising from the range of products that are offered.
Industrial energy buyers need to be well informed in order to make best decisions regarding the purchase of their fuels and electricity. They need to consider how to avoid price spikes during extremely hot or cold seasons, how to mitigate the risk of fluctuating market prices for electricity and how to forecast more accurately and manage energy expenses in each quarter.
That is where an energy management system, if in place, can help by providing accurate data on current and reliable forecasting of future energy consumption profile and amounts, as a basis for negotiating optimal energy supply contracts with an energy trader.
