MWh Software Update Improves Energy Outcomes for Customers
The Megawatt Hour just released a major software update that adds a number of new capabilities. The Megawatt Hour’s goal is to help businesses minimize cost, save time and improve business results by bringing transparency to energy costs and decision making. This new release responds to the challenges business customers face in managing energy usage and cost. This article covers one aspect of the new software capability: budgeting and forecasting.
Comprehensive forecasting of delivery and supply costs help manage risk and assist with budgeting
Business customers are typically in the dark when it comes to forecasting energy cost and usage. How do you plan for 2022 when you’ve experienced significant energy cost and usage volatility in 2019 and 2020? New in this release is forecast and tracking capability for both supply and delivery costs. No more flying blind!
How energy budgeting occurs today
Most businesses prepare next year’s budget using last year’s usage and unit cost (plus an inflation adjustment). We would hardly consider 2020 and 2021 typical usage or cost years, right? Usage declined 15-20% in some sectors. Unit rates were at all time lows, until markets reached all time highs in the latter part of 2021.
As a consequence of these high prices, the supply component of your electricity bill increased and will be a greater percentage of your costs in 2022. Thus, how do you plan for 2022 within the context of market uncertainty and volatility, and without understanding which parts of your costs are most affected?
The Megawatt Hour’s simple and transparent approach
The Megawatt Hour’s software uses best-in-class usage forecasting and a detailed costing algorithm to provide clients with up-to-date cost forecasts. These cost forecasts integrate current forward prices, today’s utility delivery costs projected over the next 3 years, and a forecast that integrates normal usage and adjusts for weather.
The software updates daily, with usage and cost updates, providing customers with access to a 36-month forecast. Our customers find that this helps them manage company budget and cost expectations. No one likes surprises!