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The energy business is set to change radically. A clutch of new EU Energy

Directives will impact the way energy is produced, transported and used. Among these are the 20-20-20 directives, which call for a 20% reduction in EU greenhouse gas emissions, 20% increased use of renewables and a 20% increase in the EU’s energy efficiency.

However, there are other changes afoot too, and these are aimed at fostering a single market for European gas and electricity. Set to begin in 2014, they place transparency and competition high on the agenda.

Significantly, all these directives will be coming at a time when the industry finds itself working with higher costs, aging and constrained assets, and narrower margins.

So what changes will these directives make? Two things are certain: Establishing the optimum levels of production, transport,

security, margins and investments will be key to maintaining profit in the coming months and years ahead. And secondly, whatever numbers and practices worked in the past five decades or so, very different ones will be required in the coming years.

» Finding insights and enabling rapid decisions

FICO® Xpress Optimization Suite enables any organisation in the energy industry to operate and compete more effectively in today’s complex environment. It allows strategists and analysts, CEOs and planners to input and explore hugely complex scenarios; the software can check an almost infinite number of variables and produce insights and learnings that would have otherwise remained hidden. At the same time it shows the optimum decisions that should be executed given any set of business constraints, whether they are real-time, operational, tactical or strategic.

FICO® Xpress Optimization Suite for the Energy Industry

decision management tools

Find the answers to a new generation of energy problems

The EU energy directives that are set to begin in 2014 create a significant challenge for strategists and CEOs in the energy industry. Not only do they represent an upheaval to a business that hasn’t had to operate in this way before, they come at a time when costs are high, and new investments are required to replace aging assets and cope with demand. These two factors could impose a new level of stress on decision makers who need to give their businesses an advantage in an increasingly competitive market. FICO® Xpress Optimization Suite is designed to help with this dual challenge: how to optimise the various metrics in a business which is being asked to change faster than ever before, yet with increasingly stretched resources on which to do it.

FICO® Xpress Optimization Suite gives business managers, planners, analysts, operational research professionals and software programmers the ability to determine the best decisions and strategies for their business to achieve desired objectives, e.g., minimise operations and investments costs or maximise profit and resource utilisation while meeting demand and service levels. It determines the most advantageous and efficient steps to achieve business objectives, whatever issues and challenges an organisation is considering.

With FICO® Xpress Optimization Suite, you can:

• Make the most economic, strategic and timely investments.

• Minimise costs of production, transportation and storage while meeting demand and business objectives.

• Model the energy supply chain to forecast energy prices and effect of major events.

• Determine the optimal asset maintenance schedule while minimising business interruption.

• Make the best energy trading and hedging decisions.

• Optimise the installation and use of smart meters to acquire customers and drive energy efficiency.

www.fico.com Make every decision countTM

FICO and “Make every decision count” are registered trademarks of Fair Isaac Corporation in the European community or the United States. Other product and company names herein may be trademarks of their respective owners. © 2013 Fair Isaac Corporation. All rights reserved.

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Specifically, FICO® Xpress Optimization Suite will help you:

• Make the most economic, strategic and timed investments while considering new technology price-efficiency-ROI tradeoffs, market risks, competitor positioning and desired portfolio fuel mix.

• Optimise business resource utilisation and asset operations to minimise costs while fulfilling customer demand, customer service levels and system security targets.

• Maximise efficiency of plants for raw energy processing and production of fuels and power.

• Optimise the energy transportation using efficient scheduling and routing of shipments, and operations of distribution networks.

• Optimise operations of energy storage facilities and the timing and amount to store given market prices.

• Make the best energy procurement decisions and select the optimal supplier mix.

• Optimise asset maintenance schedules.

• Make the best energy market trading and hedging decisions given volatility in price, supply and demand.

• Model the operation of production plants, networks, plant-fuel supply-chain constraints and energy market rules, to forecast short- and long-term energy system dynamics and energy prices.

• Optimise the installation and use of smart metering and grid technology to influence consumption in a manner that drives energy and asset utilisation efficiency.

» Tailored for the people in your organisation

FICO recognises that there are different levels of need, skill and expertise in your organisation. FICO Xpress Optimization Suite has been specifically designed so that everyone has a set of interfaces that are built to suit them.

• Business managers and analysts— can optimise profit, minimise cost-to-serve, maximise resource utilisation or find best marketing actions. Users can even optimise customer satisfaction, if there’s an appropriate metric for it.

• Scenario planners—can explore numerous scenarios, see how they impact the operations, investments, costs and profitability of an organisation, and find the plan that best meets business objectives and is within acceptable risk level.

• Optimisation professionals—can rapidly develop and deploy optimisation models and solutions with business-friendly interfaces, reduce time-to-value and be confident they’re delivering the best possible decisions.

» A rigorous basisWhile there are other optimisation tools on the market, they tend to lack the mathematical rigour of FICO. Based on more ad-hoc approaches to problem solving, they may be adequate in certain situations, but these alternatives won’t yield truly optimised solutions. This often leads to reduced performance and a waste of critical resources. FICO Xpress Optimization Suite uses advanced mathematical optimisation to compute a solution that is provably optimal and guarantees the business-user of the best possible decision.

FICO Xpress Optimization Suite allows you to:

• Analyse—Generate critical insights that are actionable and timely.

• Plan—Leverage those insights to plan for a variety of scenarios and determine the best operational and strategic action plan to enhance competitive advantage and accomplish business targets.

• Achieve Compliance—Find the most cost effective way of complying with the new directives.

• Execute—Manage assets, resources, delivery mechanisms, customer interactions and price structures to realise action plans, and swiftly refine these based on up-to-the-minute data.

» Designed for use by energy professionals

FICO Xpress Optimization Suite has been evolved from proven technology and tailored for use in the energy industry by energy experts. It puts the power in the hands of your executives and reduces reliance on IT.

Users can quickly become proficient on the platform’s intuitive interface, which streamlines even the most far-reaching strategic reviews.

» Scalable capabilities for a fast changing world

FICO Xpress Optimization Suite delivers highly scalable, high-performance solutions capable of managing an increasingly complex and fast changing commercial landscape. With ever growing compliance issues, new players and technologies, fast falling revenues and spiralling costs, it has never been more important to optimise operations, minimise costs and deliver profit. And because of its flexibility and ease of use, you’ll be able to bring your organisation a greater degree of agility than ever before.

» Distributive computing and cloud deployment

For the most complex problem solving, the level of computing required can rise steeply. FICO Xpress Suite can use a distributive computing configuration to process the heaviest computational loads with ease. Additional options include using Xpress from FICO® Analytic Cloud or deploying to other cloud platforms (Amazon EC2). Users can log in and pursue an optimisation project from anywhere in the world.

» The ideal tool for every part of the energy sector

Whether it be energy processing and production, transportation or downstream in the consumer retail and metering end, FICO Xpress Suite comprises a powerful set of tools to rapidly build business models, achieve insight and optimise decisions. Whether it’s transport, asset maintenance, pricing, market analysis or compliance, it can take the guesswork out of decision making. The results are greater measurability and efficiency, increased revenue and higher margins.