Pre-Settlement Position Intelligence —Continuous Financial Reality for Energy Markets in Real Time

ennrgy.com
23 hours ago
3 min read

Financial reality — before settlement.

For decades, energy teams have made decisions in real time and discovered the financial impact weeks later.

By the time settlement arrives, it’s already history.

Costs are locked. Variance is explained. Lessons are learned — too late to change the outcome.

That delay has quietly shaped how the industry operates. We’ve accepted that financial truth arrives after the fact. That surprises are unavoidable. That volatility is something you explain, not something you manage.

Today, that changes.

The Problem No One Talks About

Energy markets move fast. Financial truth moves slow.

ISO settlements typically arrive 45 to 60 days after the operating day. By then, the decisions that created the outcome are weeks old. Front office activity has moved on. Ops has adjusted. Finance is left reconciling what happened — not influencing what happens next.

The result is a familiar pattern:

Variance is discovered after it’s locked in
Finance flags issues when ops can’t respond
Risk teams work with stale assumptions
Organizations spend more time explaining surprises than preventing them

Most systems are very good at answering one question:

What happened?

Very few answer the one that actually matters:

What’s changing — while we can still do something about it?

A Different Way to See the Market

Pre-Settlement Position Intelligence introduces a new way of understanding financial reality in energy markets.

Instead of waiting for settlement, it provides a continuous view of expected financial outcomes — updated daily or intraday — based on how the market is actually behaving.

It shows you:

Where your position stands right now
When reality starts drifting from plan
What’s driving the change: price, volume, congestion, uplift

This isn’t reporting.

It’s early awareness.

The difference between discovering a surprise and managing it.

Shadow Settlements — Reimagined

The industry already knows the term shadow settlements. Traditionally, they exist to validate invoices after the month closes. They help answer the question: Did we get billed correctly?

That’s important — but it’s reactive.

Pre-Settlement Position Intelligence reimagines shadow settlements as something far more powerful.

Instead of running once a month, this system continuously models expected settlement outcomes before invoices exist — mirroring how the ISO will calculate them later, while decisions are still adjustable.

That means:

Daily pre-settlement cash and cost forecasts
Component-level attribution across energy, capacity, congestion, and ancillaries
Early identification of abnormal days
Independent validation before settlements are locked

Shadow settlements are no longer just an audit tool.

They become the proof mechanism for a living financial model of market reality.

From Explanation to Control

When you can see drift as it begins, the conversation changes.

Finance stops asking, “What happened last month?”

Ops sees the cost impact of decisions in near real time.

Risk teams identify exposure before it hardens.

Settlement teams prepare for abnormal days instead of being surprised by them.

Post-mortems give way to foresight.

Quiet drift becomes visible.

Surprises become managed events.

Why This Is Different

Most tools in the market look backward. They reconcile history. They explain outcomes.

Pre-Settlement Position Intelligence is designed to protect what happens next.

That requires more than reporting:

Continuous recalculation, not monthly batch jobs
Deep ISO market logic
Attribution tied to real operational decisions
Systems built to survive imperfect data and real-world complexity

It’s difficult to build. That’s why it’s rare.

And that’s why it matters.

Pre-Settlement Position Intelligence —Financial Reality, In Real Time

Position visibility isn’t the goal.

Knowing what to do next is.

Pre-Settlement Position Intelligence gives energy teams a shared, forward-looking financial truth — early enough to act, clear enough to trust, and grounded in how the market will actually settle.

Not after the fact.

Not when it’s too late.

But while outcomes are still changeable.