Energy Potential - Advisory Services

Energy Potential provides advisory services to the UK Energy Sector. Our breadth of experience allows us to offer advice across a wide area. The sections below show some of the main areas within which we work:

Financial market risk
​We have many years of practical experience understanding financial risk exposures, measuring them,  and communicating the results to key stakeholders. As well as being an active end-user of several risk systems, Gary has experience in the design and implementation of systems from first principles, has built data warehouses, and implemented risk reporting services.

​Due diligence studies
We have experience of performing diligence assessments for small, medium, and large contract structures spanning the paper and physical asset spaces. We know how to build financial models, how to combine traded market data and econometric estimation, and how this drives the valuation process.  We are able to place a value on optionality, and understand the real strategies that risk managers use to optimise asset performance. 

• Risk governance and risk frameworks: design, calibration, and documentation
• Risk measurement processes
• Value-at-risk models and processes
• Scenario analysis 
• Regulatory risk scenarios

• Strategic review of proposals
• Identification of revenue streams and their embedded risks
• Contract interpretation and cashflow modelling 
• Option pricing approaches
• Return analysis: return on capital, and risk adjusted return

​​Market regulation
Andy has been actively involved in the development of the regulatory framework within UK Electricity for many years. He has chaired numerous Industry Code working groups and is currently a member of the CUSC panel. He is also an Associate for Cornwall Insight where he provides expertise on all things network related.   

Gary has experience of the regulatory framework for UK Energy and more recently of the changes in the Banking System - introduced by Prudential Regulation Authority in the UK and Federal Reserve in the US. He has a working knowledge of these regulations and has implemented procedures and monitoring systems, and has authored and contributed to several firm-level regulatory submissions. ​

• Inform on the current regulatory regime; assessments of regulatory change; support in regulatory change processes  
• Regulatory risk mitigation strategies
• Compliance and process reviews
• Support for regulatory consultations, providing analysis and drafting responses
• Develop client change proposals for regulatory review

​​Market analysis
We keep up to date with economic analysis in the broader Energy space and have a robust understanding of the methods that market analysts use. We can offer guidance in fundamental and more technical approaches to market price forecasting and can undertake bespoke analysis. To enable us to offer these services we have developed a powerful data warehouse of energy related market data. This comprehensive database is structured in a flexible format that allows market information to be accessed and manipulated quickly and transparently. We use this data warehouse to support our own internal analysis and to provide market reports to our clients. For more information click here.