Städtische Werke Borna

Städtische Werke Borna is a regional municipal utility in the Leipzig area with annual gas sales of around 150 GWh. The municipal utility wanted to further professionalise its purchasing and sales operations in response to the changes in the geopolitical landscape and to maintain security of supply despite the volatility on the gas market. Constantly changing market conditions are increasing the flow of information and turning up an increasing number of challenges, necessitating proactive data use and swift responses.

Implementing an effective portfolio strategy can create a significant advantage over one-off procurement measures in this context. As a dependable energy supplier for the Leipzig region, it’s crucial to adapt to current market changes to provide customers with cost-optimised pricing.

VNG Handel & Vertrieb GmbH (VNG H&V) has entered into a strategic partnership with Städtische Werke Borna (SW Borna), providing customised support with portfolio management with the aim of combining security of supply and competitiveness. In close communication, VNG H&V is supporting municipal utilities with its combined expertise to handle today’s issues and challenges. The partnership covers a variety of different areas. SW Borna is supported by an interdisciplinary portfolio management team (PM team). Strategy workshops are held to develop a portfolio strategy in line with the utility’s sales strategy and projected sales figures.

Detailed reports create transparency for SW Borna in relation to its portfolios. To this end, the PM team regularly evaluates the SW Borna portfolio by applying the latest Price Forward Curve (PFC) and prepares a comprehensive portfolio report. Regular individual assessments, annual reviews and analyses make it possible to focus in on particular areas and make adjustments to the procurement strategy or specific portfolio parameters as needed. These measures are supplemented by limit monitoring system, access to VNG H&V’s Sales Trading, a daily market report, telephone market analyses and further information from VNG H&V experts in the twice-weekly analyst call.

The individual structure of the strategic partnership improves the reliability and minimises the risk for SW Borna in its procurement processes. The agreed hedging strategies also create additional flexibility and opportunities. In this way, security of supply can be reconciled with competitive prices. As a trusted and expert strategic partner, we help SW Borna master future challenges in the area of renewable energy sources and to reduce its emissions.