Energy companies cannot survive in the business of commodities trading without comprehensive ETRM software for trading and risk management.

Energy companies cannot survive in the business of commodities trading without comprehensive ETRM software for trading and risk management. Whether they are dealing in fossil fuels like natural gas or clean energy like electricity or wind, such software goes a long way towards day to day management of trading as well as making accurate financial forecasts. Furthermore, this software becomes instrumental because the energy market is always dynamic and volatile requiring accurate predictions and calculations so that companies can avoid losses. ETRM software can be designed to provide a single solution such as back office items trading or an enterprise wide solution that includes many options.

Some of the services that are provided by the ETRM software include green certificate trading, finances, back office items trading, physical trade, and settlement and risk evaluation, which companies use to evaluate their asset profiles. All these can be combined in one software pack or be singly made to suit companies’ requirements. Good ETRM software, however, should be delivered in a single package that allows users to activate only the components that they require, for example, if it is only the natural gas marketing software for those dealing in fossil fuels. Other components should be available for activation by using a license key, which can be provided at a reduced cost.

Another good condition that should be met by ETRM software is the ability to provide tailor made solutions that are designed to meet a company’s specific needs. This is because no two companies have identical business strategies or similar risk. Therefore, developers of such software must first meet a company’s representatives and know more about the challenges they are facing before developing niche specific software for them. This should also be done with considerations on the country in which the energy company is operating. Some operate locally while others have a global presence. Therefore, successful software must be able to integrate the energy policy as well as government regulations in its solutions.

Despite the high cost of the ETRM software, there are affordable solutions that can be provided by small and medium companies. These vendors in addition offer quick deployment solutions as opposed to lengthy processes that are characteristic of large global firms. This is because they provide low cost niche solutions, which may not necessarily entail overhauling of existing systems. Despite the affordable cost, complete enterprise wide ETRM software solutions should deliver all the functionalities that are required in terms of scalability, robustness, flexibility, customizability, and also be configured to meet specific needs.

Finally, the time taken for deployment is also a factor that should be given preference when selecting such software. While most ERTM software companies can take several months to years to deploy their systems, it is worth noting that there are vendors that can do it in months yet deliver functional systems that are niche specific and tailor made. In the end, well developed systems should be able to help a company to get solution that cover their needs in financial trading and complex energy risk management despite the time it takes for deployment.

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George Rodney is the author of this article on Natural Gas Trading Software.
Find more information on Natural Gas Marketing Software here.


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