Using the right cost structures to maximise returns and limit exposure to costs
Knowing the local market and how to take advantage of spot and long term positions
Identifying contracting strategies which enable maximum flexibility
Strategy Development
PCS has experience developing strategy in the energy market for a wide range of customers. Setting the right strategy enables a customer to optimise their costs, trade off volatile costs with cost certainty, and remove costs when conditions are challenging
PCS's capabilities include:
Developing an energy procurement strategy that is appropriate for a project or ongoing facility
Understanding the energy requirements of a project or facility taking into account local conditions and local energy supply options
Evaluating alternatives that best meet your energy needs including crude oil, fuel oils, diesel, LNG, LPG, pipeline gas, solar PV, wind, battery storage, and hydrogen
Tariff and Contract Structuring
With decades of contract experience and energy cost modelling, PCS is well placed to provide advice on project cost modelling together with contract structuring to reduce overall project risks.
Tariff structures are generally not well understood as these vary across jurisdictions, and between operations and between facilities. This makes for a considerable array of cost configurations which have a direct impact on the profitability of existing or proposed ventures.
PCS can work with clients to navigate these uncertainties including:
Evaluating fixed and variable tariff components
Benchmarking tariffs to determine weighted average cost of capital and capital costs
Structuring tariffs to provide incentives and protect downside risks
Optimising long term commitments with behavioural charges
Commercial Structuring
PCS can assist those evaluating an existing venture or those considering the creation of a new venture by providing independent advice on the commercial realities in Australian energy markets.
PCS can advise on:
The benefits of structures for engaging with the market
Competition issues
Energy Regulation
Energy regulation in Australia is complex and varies geographically by jurisdiction. Knowing and understanding the regulatory landscape in energy markets can and does impact the cost and operational of projects. PCS understands the regulatory regimes and can advise customers on how to reduce risks of regulatory breaches and remain compliant to local regulation.
PCS has deep experience in:
Reviewing and advising on access regimes
Identifying opportunities and strategies to take advantage of access regimes
Negotiating with asset owners and regulators over access and access disputes
Dealing with a wide range of issues captured under regulation including quality, market interfacing systems, and data analysis
Energy Procurement
PCS can provide quality advice on procurement of gas and electricity to meet the needs of your project.
PCS has implemented a range of strategies for customers including:
Reviewing historical energy demand and forecast energy demand to optimise volume commitments
Tendering supply
Negotiating take or pay commitments
Developing hybrid strategies utilising fixed, short term and spot procurement
Price arbitration and reviews
Off-market inquiries with project proponents to develop energy supply and de-risk projects
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