Annual spend: £2.6m
Number of sites: 3
Procurement Product: Flex Bespoke & Flex Connect
Group Services: Energy Procurement, Metering & Water Advisory
Our client is an international manufacturer of activated carbon, carbon filters and water purification systems. These are distributed globally, with the company also boasting Europe’s largest reactivation capability for the recycling of spent carbons. After initially engaging with Optimised Energy for Energy Cost Recovery services, where £77k of billing refunds were secured for the client, Optimised were employed for wider utility management leading with procurement services of their gas and power usage.
With an annual energy spend of around £2.6million pa, our client sought a more ambitious and proactive trading strategy than that which they had utilised previously. Internal drivers required the very lowest cost to be secured for the utility spend, with an unusual flexibility around price certainty and budget security.
With a sizeable difference between gas and power requirements, the strategy scoping session completed between Optimised Energy and internal stakeholders concluded that different supply products were required for gas and electricity. Following a rigorous market tender, the gas entered a standalone flexibly traded contract with instruction to apply a medium level of risk to the trading strategy executed. Therefore, a portion of volume is traded in advance of the supply delivery window, and a portion is traded within the delivery window. The power was entered into a lower risk strategy, traded in a group portfolio within the Optimised Energy Flex Connect basket. Here, wider volume tolerance bands support the client’s variable power demand on site.
The client is currently seeing savings of 16.5% against the performance benchmarks in their gas contract, and savings of 7% against market average in the electricity contract. Both of these performance metrics were agreed with the client ahead of delivery. The Optimised Trading team issue fully costed forward budgets on a quarterly basis, for the client to use in their internal reporting processes. The client recently extended services with Optimised Energy, adding further procurement services for water and for metering to the relationship.
Optimised Energy is a full-service energy consulting business. We deliver energy cost and kilowatt hour savings for our clients through a ‘Managed Energy Services’ approach that combines best-of-breed hardware, software and service. Our solutions are tailored to key market sectors including Commercial Real Estate, Manufacturing, Local & Central Government, Renewable Generators, Hospitality and Retail. Our team of consulting and outsourcing specialists are highly skilled in areas ranging from Energy Procurement to Cost Recovery, Renewables, Invoice Validation, Utility Recharging, Compliance, Sustainability and Energy Efficiency.
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