In the dynamic landscape of the Philippine energy sector, the complexities and challenges inherent in energy trading and billing systems have become increasingly apparent. 

This article sheds light on the multifaceted challenges faced by energy companies in the Philippines, addressing crucial pain points that extend from regulatory compliance to data security management. From navigating complex tariffs and diverse pricing structures to grappling with legacy systems, the sector finds itself at a critical juncture where technology and innovation are not only desired but imperative for sustainable growth.

Energy Trading and Billing System Challenges

Now, let’s delve into the challenges posed by energy trading and billing systems and explore potential solutions to overcome them.

1. Regulatory Compliance
2.  Complex Tariffs and Diverse Pricing Structure
3. Data Integration Challenges
4. Manual Processes and Inaccurate Billing
5. Manual Generation of OR
6.  Dispute Resolution and customer education:
7. Data Security and Management
8. Scalability
9. Legacy Systems

1. Regulatory Compliance

Challenges

• Compliance with essential, complex, and ever-evolving regulations
• Energy Regulatory Commission (ERC), Department of Energy ( DOE), and  Wholesale Electricity Spot Market’s (WESM) new policies, regulations, and guidelines that every market participant has to adhere to

Solutions

• Exist offers a comprehensive trading and billing system solution that integrates alterations related to WESM Compliance, helping energy companies to adjust to regulatory requirements updates will be implemented in testing environments well in advance of WESM’s trial operation or commercial go-live stage, providing you with sufficient time for testing before putting it into operation
• Whether your Exist’s Trading and Billing system is hosted on our cloud, your cloud, or on-premise, as long as you maintain an active subscription or an ongoing maintenance and support agreement with us, we will ensure that it is kept up to date

 2. Complex Tariffs and Diverse Pricing Structure

Challenges

• Most energy companies offer various tariff options and diverse pricing structures to customers, including load profile-based products, time-of-use rates, and tiered pricing. Accurately managing and calculating these tariffs and various pricing structures can be complex and error-prone. In addition, implementing a new pricing structure for a customer within an automated system usually incurs additional costs for customization.

Solution 

• Our system uses a flexible Formula and Structured Query Language (SQL) builder to manage tariff and pricing structures. It is capable of handling a variety of tariff and pricing frameworks, automatically computing bills per your client contracts.

3. Data Integration Challenges

Challenges 

• Ensuring billing accuracy requires all data to be both up-to-date and accurate. However, the integration of data from diverse sources, such as meter readings, customer information, and market data, can pose a significant challenge.
• Accessing NMMS data, whether through API, MPI, the IEMOP website, or a data subscription, may present a challenge for users who are not familiar with technical processes.

Solution

• We have invested in a robust integration platform and middleware that streamlines data integration, guaranteeing data accuracy and consistency throughout the process.
• Exist Energy System Solutions has direct integration with WESM, NMSS, CRSS, PREMS, and Data subscription services
• Our system includes seamless integration with a range of ERP and CRM software, including Salesforce, NetSuite, and SAP.

4. Manual Processes and Inaccurate Billing

Challenges 

• Traditional billing procedures are labor-intensive and prone to human errors, which can stem from factors like meter reading discrepancies, data entry inaccuracies, or system glitches. Such errors may give rise to conflicts with customers and potential regulatory penalties.

Solution: 

• Exist’s end-to-end billing automation substantially minimizes the need for manual intervention, this will help you streamline your processes from meter reading to invoice generation to ensure both efficiency and accuracy.

5. Manual Generation of OR

Challenge

• Generation and submission of OR hardcopies to regulators become tedious especially due to the volume of customers. The current process is to manually generate the OR, have it printed, signed, and scanned then send it to IEMOP.

Solution

• We have already built an e-OR generation functionality in our Trading and Billing System to eliminate the manual and tedious process of receipt generation and submission. (Please take note that CAS Accreditation is a prerequisite for handling e-OR functionality.)

6. Dispute Resolution and Customer Education

Challenge 

• Customers may need help to digest and understand bill details and resolving billing concerns and disputes can be resource-intensive.

Solution 

• Our system could fully integrate into your Customer Relationship Management (CRM) software, empowering you to track and resolve billing-related inquiries and disputes efficiently, enhancing your customer service. Further, we have developed customer portals with detailed bill breakdowns and explanations to enhance customer understanding.

7. Data Security and Management

Challenge 

• Protecting customer data is paramount. Sharing spreadsheets where data are stored is a possible security vulnerability.

Solution

• By having an automated system, robust data security measures, including encryption and access controls, safeguarding the customer information would already be built in.

8. Scalability

Challenge

• Expanding or scaling systems and operations alongside an increasing customer base and meter data

Solution

• We utilize cloud-based and container-orchestrated billing solutions, enabling us to expand dynamically with your customer and data growth.

9. Legacy Systems

Challenge

• Other Energy Companies have become accustomed to the existing processes and systems of legacy systems, which could impede efforts to modernize.

Solution 

• We have a specialized implementation team committed to assisting you in the gradual replacement of your legacy systems, facilitating the transition of your systems and processes to scalable and contemporary solutions.

Exist Software Labs Unveils Strategic Energy System Solutions

The examination of energy trading and billing system challenges in the Philippines reveals a landscape ripe for transformation. The identified pain points, ranging from regulatory compliance hurdles to the limitations of legacy systems, underscore the urgent need for strategic interventions. As the industry seeks to modernize and enhance its operational efficiency, a forward-looking approach becomes paramount.

Exist Software Labs, Inc.’s Strategic Energy Solutions presents a holistic and tailored approach to uplift the energy trading and billing landscape in the Philippines. By addressing these pain points, we pave the way for a future where the sector not only meets current challenges but thrives in the face of evolving industry dynamics.