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Energy retail and services

Energy retailer financial model, built free.

A three-statement Excel model for an energy retailer, built from your own figures and checked to balance.

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  • Usually ready within the hour

We use generative AI in parts of our process, so mistakes can occur. Every model should be checked by a person before it is relied on. Read more

The business

Buys electricity and gas wholesale, pays network charges and sells to households and businesses, earning a retail margin per customer.

See the sampleHow the model works

In short

  • 01

    Three linked statements

    Income statement, balance sheet and cash flow, linked in every period.

  • 02

    Valued two ways

    Discounted cash flow and trading multiples, side by side.

  • 03

    Monthly to annual

    Monthly, quarterly, half-yearly or annual periods, for up to 30 years.

  • 04

    Checked every period

    A Checks sheet shows the balance sheet balances and the cash reconciles.

The sample

The sample, as Excel draws it.

Built by the same system and checks as yours, on illustrative figures: every sheet as Excel draws it, or live.

Annual · 10 years · Low detail
Energy retailer sample model.xlsx
The Summary sheet of the sample energy retailer model

Illustrative figures: the sample describes no real business. The live preview shows values; your model’s Excel file has every formula.

How it works

How the model works for an energy retailer.

  1. How it earns revenue2 formulas
    Oil, gas and LNG sales · Oil and gas asset 1
    Oil, gas and LNG salesOil, condensate and NGL salesGas sales
    Retail energy revenue · Across the business
    Retail energy salesElectricity usage chargesElectricity supply charges
  2. What drives its costs3 formulas
    Royalties and resource taxes · Oil and gas asset 1
    RoyaltiesWellhead valueRoyalty rate
    Production costs · Oil and gas asset 1
    Production costsNet productionfrom productionProduction cost per boe
    Wholesale, network and scheme costs · Across the business
    Wholesale energy, network and scheme costsWholesale energy costNetwork chargesEnvironmental scheme costs
  3. What it invests in3 formulas
    Capex, depletion and exploration · Oil and gas asset 1
    Development and sustaining capexSustaining capexGrowth capex
    Capex, depletion and exploration · Oil and gas asset 1
    Depletion (units of production)Opening net book valueDevelopment and sustaining capexShare of the reserves produced
    Capex, depletion and exploration · Oil and gas asset 1
    Closing net book valueOpening net book valueDevelopment and sustaining capexDepletion (units of production)
  4. How it is funded3 formulas
    Debt
    Closing balanceOpening balanceDrawdowns allocatedRepaid at maturityPlanned repayments and prepayments allocated
    Debt
    Opening drawn balance (all facilities)Facility 1 (revolver) — Opening drawn balancefrom revolver) — Opening drawn balanceFacility 2 (term loan) — Opening drawn balancefrom term loan) — Opening drawn balanceFacility 3 (notes) — Opening drawn balancefrom notes) — Opening drawn balance
    Dividends and distributions
    Closing dividends payableOpening dividends payableDividends declaredDividends paid
  5. How profit becomes cash3 formulas
    Working capital
    Trade receivablesRevenuefrom statementsDebtor daysDays in period
    Working capital
    InventoryDirect costs (positive)from statementsInventory daysDays in period
    Working capital
    Trade payablesCash operating costs (positive)from statementsCreditor daysDays in period
What it covers

24 parts, each one tested.

Every part is a tested building block with its own checks: yours is put together from the ones your business needs.

  • CPI forecastConsensus curve with long-run anchor
  • Corporate costsFixed cost base indexed to CPI
  • Working capitalDays-based working capital
  • Income taxCorporate rate with tax losses
  • Corporate fixed assetsCapital works in progress
  • DebtFacility register with limits and refinancing
  • Dividends and distributionsPayout of net profit
  • Discounted cash flow valuationDCF on free cash flow to the firm
  • Multiples valuationEV / EBITDA multiple
  • Retail energy revenueConsumption × tariffCustomer accounts, energy sold and retail revenue by segment.
  • Wholesale, network and scheme costsInternal transfer from own generationCost of the energy sold to customers — wholesale energy and hedging, network charges and environmental scheme costs.
  • Cost to serve and acquireAcquisition, retention and serviceRetail operating costs — billing, call centres, bad debts, marketing and customer acquisition.
  • Collateral and marginingInitial and variation marginCash posted to exchanges, market operators and counterparties against open positions and prudential requirements.
  • Wholesale electricity price curveAdviser price curveThe wholesale electricity price forecast used by the revenue and cost parts that need it.
  • Energy and utility KPIsUpstream unit metricsThe ratios investors and lenders use to judge energy and utility businesses.
  • Key-metric summaryLast-twelve-month and run-rate metrics
  • Discount rate (WACC)CAPM at target gearing
  • Exchange rate (US dollar)Flat exchange rate
  • Field and project registerInterest, reserves and book valueWorking interest, reserves and carrying value of each field or LNG project.
  • ProductionExponential declineOil, gas and LNG volumes produced each period (net to the company's interest).
  • Oil, gas and LNG salesBenchmark × differential by productRealised prices × volumes for oil, condensate, gas and LNG.
  • Royalties and resource taxesRoyalty on wellhead valueGovernment and private royalties, production sharing and petroleum resource taxes.
  • Production costsCost per boeLifting, processing, transport and liquefaction costs.
  • Capex, depletion and explorationUnits-of-production depletionDevelopment and sustaining capex, exploration spend, and depletion of oil and gas properties.
Key numbers

The numbers it tracks.

  1. 01customer accounts
  2. 02churn
  3. 03gross margin per customer
  4. 04cost to serve
  5. 05EBITDA per customer
Used for

What it is used for.

Also used for
  • Scenarios and sensitivities
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Every energy and utilities model

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The sample is built on illustrative figures and describes no real business. Models are calculations prepared from the information you provide. They are not financial advice and must be independently verified. See our terms.