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 "PA has played a critical role in the integration of our electricity and gas businesses. They have developed a new business model which creates a strong platform for continued growth across the European commodity markets."
Kurt Bligaard Petersen, Executive Vice President, Commercial Division of Dong Energy

DONG Energy - transforming the trading business

Following this Danish based energy group's rapid expansion through several mergers, PA Consulting Group has been working with the Commercial Division of DONG to adjust its business model and transform its operational capabilties.

The merger of six Danish energy companies within the DONG Group in July 2006, and rapid international growth, created a pan-European operation of significant scale. This expansion challenged all parts of the organisation, not least the Energy Markets Division, which acts as the multi-commodity trading hub for all wholesale positions.

Early post-merger activities were designed to ensure operational resilience and continuity. Having successfully achieved this objective, Energy Markets’ focus has turned to the challenge of aligning its business model and commercial capabilities to the much expanded operational scope. This challenge extends from managing significant organisational change through to re-engineering of business processes and development of leading operational and IT capabilities.

PA has been working with Energy Markets since 2006. Drawing on our deep sector experience – and particular expertise in energy trading and risk management – we worked with the division’s senior management team to re-design and align the business model to the post-merger environment. One outcome of this project was a significant reorganisation implemented in late 2006.

In early 2007, Energy Markets launched a major business led improvement programme aimed at designing and delivering operational and IT capabilities on par with the best of DONG Energy’s European peers. PA has been assisting the client programme team across the majority of this programme. Our support ranges from provision of in-depth subject matter expertise across both the business and IT components through to programme and project management, procurement and transformation services.