ElectriCity - Utility Management

In the game, the players take over the management of an imaginary electricity provider company. Their task is to analyze data, make decisions and create a strategy, the goal is the successful operation of the company. The location of the service (the geographical region), the market (which consumer groups), the prices and the advertising budget are also determined by the participants.

While the technical issues are very important in providing electricity, we are simplifying them in this game, the emphasis is on modeling the market and the finances. There are 3 technical factors necessary for power supply: providing the infrastructure, skilled employees, and the energy purchased. During the simulation, apart from the operative and periodic decisions, there are some unexpected events that may take place. Proper adaptation to these situations is also the responsibility of the management. In addition to the constant periodic decisions, the company can decide on launching various projects, for example, international supply accreditation, its own power plant program, IT and warehousing outsourcing, marketing agency, etc.

The electricity supply market essentially consists of 2 + 2 members: on the one hand the energy-generating plants and the energy-consuming customers, and on the other hand the energy distributors, the National Electric Works (let’s call it wholesaler), which is responsible for the transportation of high-voltage energy, and the local electricity providers, whose job is to serve consumers and the distribution.

How ElectriCity simulation software works:

  • The students form groups and take over the management of the virtual electricity provider company created by the simulation software.
  • The virtual company is managed by making strategic decisions for every quarter of a year. The software gives a written feedback about the results of the decisions, and it also shows the important economic indicators (profit, cash flow, turnover, market share etc.) on a graph.
  • The software can simulate up to 8 periods.

Advantages and learning points:

  • The program is complex enough to synthesize and put into practice the knowledge of students studying finances.
  • The game presents the competition on the energy market, in which electricity provider companies play an active role.
  • ElectriCity requires the proper operation of a number of factors, which characterizes the energy sector in general. Careful planning is essential to be successful in this simulation.
  • The game challenges and develops analytical skills, as students are required to find the data they need from various financial and commercial reports (for example balance sheets, income statements, cash flow, market research).
  • As a result, just like in real life, effective teamwork is essential to successfully complete the game.