Darmstadt (energate) – The trading and portfolio management company Citiworks wants to build up the sales of services related to trading. “In recent years, we have driven significant development of our capabilities,” Citiworks Managing Director Christian Stewens told energate.
The trading company invested primarily in digitialisation and automation of processes. Stewens is particularly proud of the early decision to introduce an algo-trading system for power trading, in other words automated trading based on algorithms. Citiworks worked together with development partner VisoTech on the implementation of the algo-trader and uses the system. The Entega subsidiary also offers access to the system and thus real-time market access to third parties. Citiworks has been active primarily as a procurement unit for the Entega Group. In 2017, the company operated a power portfolio of 10.9 billion kWh and a gas portfolio of 5.3 billion kWh.
Stewens is particularly proud of the early decision to introduce an algo-trading system for power trading.
Citiworks builds up its sales
Citiworks currently has around ten clients, which the company won without an active sales team but rather through bilateral contacts. This year, the company has decided to form its own sales team with five employees. The target group is municipal utilities, who will be offered automated market access as well as portfolio management and balancing group management for gas and power. “We also offer the marketing of flexibilities and direct marketing,” said Stewens.
High degree of digitalisation
The Managing Director is convinced that Citiworks can achieve sales success in a market with many suppliers and characterised in recent years by restructuring and adjustments among market participants. It is precisely through these changes that he sees an opportunity, since Citiworks has already digitalised its trading processes to a high degree, according to Stewens. This represents a competitive advantage over other providers: “In algo-trading, we get the deal from the customer’s system to the exchange in less than a second,” a benefit that he sees for municipal utilities.
[Citiworks] also offers access to the system and thus real-time market access to third parties.
Citiworks was founded in Munich in 2000 with the additional name “Deutsche Stadtwerke-Allianz” [German Municipal Utility Alliance]. In addition to Entega (at that time Heag), Stadtwerke München and Stadtwerke Mainz were involved in its foundation. Since 2010, the company has been fully owned by Entega and in 2012 moved to Darmstadt. 18 employees work for the company; in 2017 the company generated a profit after tax of 4.2 million euros with a turnover of 460 million euros. hl
Article written by Heiko Lohmann and published in energate messenger+ on August 17, 2018; © 2018 energate gmbh.
You can download the original article (in German) in PDF Format.
The autoTRADER access from VisoTech enables public utilities and other energy suppliers without their own direct market access to profit from algo-trading and to have more control over their trading decisions. The system executes trades through the market access of the service provider, observing customer-defined limits.
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