The National Office for Electricity and Portable Water (ONEE) is launching a system to modernize its purchasing processes, involving the setting up of a trading room in 2021. The objective is to cover itself against risks in the commodity, freight and foreign exchange markets.
The National Office for Electricity and Portable Water is preparing to launch its trading room for better management and coverage of risks on international markets. This project, which will see the light of day in 2021, is part of a strategy to modernize the Office’s purchasing processes. To speed up the implementation of this project, a call for tenders has just been launched by ONEE for the selection of a specialized firm.
Its mission will consist in assisting the internal project team in choosing the most appropriate structure and sizing, setting up the platform and the necessary tools and in carrying out, during an anchoring period, the first risk hedging operations. “This is a major project for the restructuring of the risk management activity, which consists of providing the Office with a complete management, analysis and decision-making system in terms of management and risk coverage.
The main results expected from this strategic project are the control and optimization of expenses relating to high-stake purchases, the design of effective and optimal risk management strategies, monitoring of the Office’s exposure and intervention on the markets to cover the risks run by the Office ”, declares ONEE.
This new activity will have real added value in terms of cost optimization and improvement of operational and financial performance, estimates the Office. Especially since, due to the diversification of its activities and the peculiarity of the electricity market, ONEE is very often exposed to the risks of fluctuating fuel prices, freight, and exchange rates. This exposure can have a significant impact on currency translation differences, balance sheet items, financial charges, equity and ONEE’s cash position.
Mohamed Amine HAFIDI
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