Client’s Challenging Situation:
An Eastern Canadian energy retailer had considerable expertise in electricity retailing and commodity management. However, it had little expertise in natural gas retailing. The retailer approached us to see if we could provide back-office to support natural gas retailing in Eastern Canada.
Scope of the Problem:
The electricity retailer had no expertise:
- selling retail natural gas [to small commercial, small industrial, and residential consumers],
- procuring supply of natural gas from Western Canada,
- arranging transporting of natural gas from Western Canada to Eastern Canada,
- arranging delivery of natural gas, within Canadian provinces, to end users,
- managing a natural gas supply and sales “book of business”, or
- paying for natural gas supply or invoicing and collecting for natural gas sales.
We managed all the above [and more] on behalf of the energy retailer. We charged a monthly fee and a small fee linked to the volume of natural gas delivered each month. We provided detailed reports every month, including natural gas marketplace updates, and content for natural gas marketing messages.
The Value Delivered:
The energy retailer was able to concentrate on marketing & sales of natural gas while we managed all the back-office details. The energy retailer quickly grew a profitable natural gas client base to complement its electricity client base.