The challenge

ActewAGL is an energy retailer operating in the ACT and regional NSW, owned by Icon Water and Australian Gas Light Company (AGL)

ActewAGL has an annual budgeting process which requires revenue forecasting at the customer level. The finance team had a financial model which it was using but it did not link to current system data and did not have outputs which met business needs.

Our solution

Financial model review and build

Our team completed a comprehensive review of the internal computation logic of ActewAGL’s  model. The work included providing a findings register with comments flagging potential model logic issues and areas for improvement in relation to best practice modelling. The review findings resulted in our team being engaged to rebuild the revenue forecasting model so that it was more user friendly, interfaced with existing systems and had updated model outputs to align to various stakeholder needs.

Our impact

A new best practice revenue forecasting model was delivered to ActewAGL

The financial model was co-designed with ActewAGL to ensure it was fit for purpose and could be used by its internal teams moving forward. The model was designed to used internal data sources so minimal data manipulation is needed to update the model. In addition, a comprehensive scenario handler was built into the model to allow the team to compare financial results under varying scenarios and sensitivities. Lastly, the team met with senior leadership to obtain feedback on model outputs that would simplify key reporting processes.

Key insights

• Increased accuracy in calculations by adhering to best practice principles and completing independent reviews of the new model 
• Ease of and consistency in reporting key metrics to leadership 
• Flexibility in model design to allow for future potential revenue streams 
• Scenario handler functionality to enable scenario and sensitivity analysis 

“The model is looking great. We can’t wait to use it.”

• April Newell, Planning and Analysis Manager, ActewAGL