NBV = Network Billing Validation

Winner of the best financial application at the iAwards 2005. Read more >>>

Are you managing the financial risk?

With the advent of Full Retail Contestability (FRC) has come a number of significant changes to the way in which the utilities industry operates. Each of these changes has introduced significant challenges to the major industry players - in particular to the retailers.

One of these challenges arises from the manner in which distributors invoice the retailers for usage of the network. Distributors charge the appropriate retailer the NUOS charges for each customer in their area. Prior to FRC, the vast majority of the retailers customers were within the area of their associated distributor and the payment of NUOS charges was only the movement of cash between related entities. The financial risk to the retailer/distributor pair was minimal. With FRC this is simply no longer true.

The retailer is now faced with a new financial problem - When a distributor requests monies from me, how much should I pay and when should I pay? And this is a massive problem - each of the major retailers would be paying in the order of $500M to their networks each year. If there is an error rate of just 0.5% in the requests coming from the networks, then the retailer could be paying up to $2.5M more than they should.

Shine Technologies has a long history of finding solutions to the challenges of competition in the utilities market. We own a purpose built solution to the problem described above. The system is called NBV - Network Billing Validation, and it gives the retailer the power to manage the distributors requests for payments in the brave new world of FRC.

To find out more about our solution you can: