DTEK Selects Allegro Energy Trading and Risk Management System

Dalla, TX - 26 June 2012

Ukrainian Energy Company to Manage Coal and Power Operations with Allegro Software

Allegro, a leading provider of energy trading and risk management (ETRM) software, announced today that DTEK has selected the Allegro 8 platform to manage its coal trading and logistics, power generation and power trading operations. DTEK required an integrated solution to implement sophisticated business processes and controls around trading, valuation, hedging, logistics, and risk management, as well as provide better transparency into positions and a quantitative methodology to improve position management.

DTEK, the largest privately-owned vertically-integrated energy company in Ukraine, operates a production chain from coal mining and processing to electricity generation and sales. Much of the coal mined at DTEK is prepared at the company’s own plants and supplied to enterprises in DTEK’s generating division, while some of the coal is exported to Europe, Asia, South and North America. The electric power produced by DTEK is supplied to Ukraine’s wholesale energy market, and power purchased on the market is supplied to Ukraine’s largest industrial consumers. Electric power is also exported to Belarus, Moldova, Poland, Hungary, Slovakia and Romania and DTEK cooperates with many of the main energy trading companies in Europe.

“Increasing commodity and market complexities prompted DTEK to seek a software solution to effectively support our business expansion. With Allegro, DTEK will benefit from an integrated energy trading strategy and true position management to support multiple commodities and the complex hedging and risk management techniques associated with our business,” said Andrey Favorov, Commercial Director at DTEK. “Allegro’s Agile deployment approach allows DTEK to rapidly implement the technology infrastructure and begin realizing business benefits, as well as provide the framework on which to extend in future phases to include new markets, commodities, and users.”

Replacing spreadsheets and manual processes with a single integrated solution will provide DTEK numerous business benefits, including:

  • Enhanced decision making with real-time position reporting and analytical tools
  • Reduced operational risk with the implementation of necessary workflows, controls, limits, and approvals
  • Cost effective scalability to support ongoing growth in trading volume and complexity
  • Improved timeliness and accuracy of physical and financial transaction capture and confirmation
  • The ability to capture trade details for valuation of fixed forwards, indexed forwards, swaps, spreads, cross border trades, capacity, transmission, and freight
  • Automated, timely invoice generation, settlement, accounting, and related reconciliations

“We look forward to working with DTEK as they expand their power trading business in Ukraine and throughout Eastern Europe,” said Jonathan English, Allegro Vice President, EMEA Sales. “The Allegro 8 platform will give DTEK the technology and advanced analytics to better seize market opportunities in this region.”

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