Energieversorgung Marienberg GmbH

Energieversorgung Marienberg GmbH (EVM), part of the Stadtwerke Marienberg GmbH group of companies, has been supplying the town of Marienberg and the Central Erzgebirge region with electricity, natural gas and (district) heating since 2007. In addition to individual electricity and natural gas supply contracts for private and business customers, the regional energy supplier’s portfolio also includes a wide range of energy services, e-mobility and photovoltaics. 

The availability of fully flexible supply products on the natural gas market has been limited due to the volatility of market prices in conjunction with prices being on a consistent upwards trend since mid-2021 - a situation which was only exacerbated by the geopolitical situation in 2022. EVM faced the necessity of arranging long-term procurement contracts so that it could continue to guarantee security of supply over the long term. In this context, hedging the temperature risk and ensuring the calculability of prices were essential. However, some supply models were only offered to a limited extent in 2022. Since temperature risk cannot be hedged by purchasing monthly bands or standard commercial products, EVM wanted to develop – in the context of its strategic partnership with VNG H&V – an individual delivery and procurement concept which effectively minimised temperature-related quantity risks. In addition, the sub-portfolios should also be taken into account in the individual procurement requirements. 

EVM and VNG Handel & Vertrieb GmbH (VNG H&V) have enjoyed a successful business relationship going back many years – a relationship which is deepened and strengthened by the strategic partnership. In order to identify the individual needs and challenges for EVM, a wide-ranging exchange took place by using the Performance Check module. This included an initial strategy update as well as a detailed analysis and simulation of EVM’s current procurement strategy. Initial ideas for future optimisation were also collaboratively identified in line with the goals of the municipal utility. Technical experts from VNG H&V conducted an extensive market survey and detailed analyses of historical load profile data and temperature risks to complement the overview of EVM’s procurement processes to date. 

An appropriate supply model was created and then rounded off with individual portfolio support and joint procurement workshops to determine the final procurement strategy.

In accordance with the requirements of EVM, the supply model for a sub-portfolio is based on a modified regression model that effectively minimises temperature and volume risks. The temperature-based supply model is managed by the balancing group management of VNG H&V so that it is responsible for the entire energy management process and balancing group risks.   

The portfolio support is supplemented by customised regular reports from VNG H&V and joint portfolio meetings which create transparency for EVM of the changes in its portfolio and the current market situation. An annual workshop will also be held to evaluate, critically reflect on and, if necessary, adjust the selected procurement model and the underlying procurement strategy.   

The strategic partnership made it possible to develop a procurement solution for EVM adapted to its individual needs and requirements. EVM benefits from the jointly developed hedging strategies, which minimise temperature, price and volume risks while identifying ways in which the procurement process could be improved. The successful relationship with trusted partner VNG will be continued in future. We will work closely together in order to find joint demand-orientated energy procurement solutions.