en |de|fr |es|nl

Utilities

Gas and electricity consumption is strongly influenced by weather conditions.

Fuel and electricity is used to a large extent for space heating or cooling. Hence, the demand for energy varies according to temperature.

Traditional energy companies are financially exposed during warm winters or cool summers due to decreased energy demand. Alternative sources of energy such as hydroplants or wind farms are also exposed when drought or lack of wind reduce energy production.

White Paper: Disclosure of Weather Risks of European Utilities Jan 2010

  
White Paper: Weather Risk Management, A challenge for the energy industry

  
Example: Windpower Producer  
Example: Gas distributor  
Example: Hydropower producer  
Example: Wood pellet producer  
Example: Solar power producer  

 

 

Industry quotes

French state-controlled electricity group Electricite de France SA (1024251.FR) Friday reported a 15.2% drop in first-half net profit due to flat sales on mild European weather and non-recurring items. EdF reported first-half net profit of EUR3.51 billion, compared with EUR4.14 billion in the same period a year earlier.
(Dow Jones, August 2007) 

An unusually mild winter in 2006 had a strong dampening impact on gas demand for residential use worldwide. In North America and North West Europe, prices responded to the decrease in residential demand and consequent record inventory levels by falling well below expectations in the GMR 2006.
(OECS/IEA Natural Gas Market Review 2007 – Executive Summary)


CelsiusPro Certificates for Utilities

Frost Day:  Frost Day certificate pays out a pre-defined amount for every day the daily minimum temperature is below your specified level.

Heat Day: Heat Day certificate pays out a pre-defined amount for every day the daily maximum temperature is above your specified level.

Dry Season: Dry season certificate pays a pre-defined amount for every millimeter if the cumulative rainfall during a particular period is below a specified level.

Rain Season: Rain season certificate pays a pre-defined amount for every millimeter if the cumulative rainfall during a particular period is above a specified level.

HDD Call: Heating Degree Day certificate pays a pre-defined amount for every Heating Degree Day (HDD) if the sum of the daily HDD's during a particular period is above a specified level.

HDD Put: Heating Degree Day certificate pays a pre-defined amount for every Heating Degree Day (HDD) if the sum of the daily HDD's during a particular period is below a specified level.

CAT Call: Cumulative Average Temperature certificate pays a pre-defined amount for every degree Celsius if the cumulative average temperature during a particular period is above a specified level.

CAT Put: Cumulative Average Temperature certificate pays a pre-defined amount for every degree Celsius if the cumulative average temperature during a particular period is below a specified level.

We are here to assist, please contact us.


_______________________________________________________________________________________________________________________________________

CelsiusPro  |   Phone:  +41 44 445 3434  |   E-Mail:  info@celsiuspro.com