Contract benchmarking for industrial customers
Presented by SUEZ Energy International Tractebel Energia
CONTEXT
Tractebel Energia is the largest private power producer in Brazil, and one of the main contributors to the financial results of SUEZ Energy International (SEI). The company has six hydroelectric plants and seven thermal power stations. In Brazil, rising demand by industry contrasts with the lack of available energy for that market. Assuming that energy is becoming a scarce resource, Tractebel Energia has shifted its focus from volume to margin maximisation.
INNOVATION
SEI's marketing department and Tractebel Energia’s sales teams have developed a tool that enables them to evaluate each contract in terms of margin generated over its entire life cycle, and take account of all other aspects of the contract (e.g. flexibility clauses, 'take-orpay' arrangements, etc.). This Contract Benchmarking Platform (C-BeP) includes an engine to devise scores from 0 to 10 for each contractual aspect and for the margin. It also contains a database of all contracts, which can be compared with each other to identify why they perform as they do. With the simulation module, new proposals can be evaluated in relation to the existing portfolio.
RESULTS
Tractebel Energia’s sales teams are now using C-BeP as a support tool in negotiations with industrial customers. For its part, the marketing team has analysed the existing portfolio to optimise the company’s offerings. As a result, new contracts perform better and less well performing ones are not renewed. This platform is now being deployed at other SEI subsidiaries, starting with Thailand, and there are plans to have the tool used by other SUEZ subsidiaries.
