Annual spend: £3.3m
Number of sites: 3
Procurement Product: Flex Connect Basket
Group Services: Procurement, Metering, ESOS & Compliance
Our client are the largest commercial ship repair and conversion specialist in the UK with sites spanning from Tyne & Wear down to Falmouth. They are a world class fabrication, engineering and marine solutions company with a rich heritage capable of the most demanding project. Previously utilising fixed price procurement direct with suppliers, our client tendered for a new energy procurement partner whilst also seeking to review how they were purchasing energy and whether this was the more appropriate method to address their business needs.
With a contract spend of around £3.3million, increasing in a rising energy market, our client required a full cost benefit analysis of procurement options for their portfolio renewal. There were added complexities to this portfolio in that consumption requirements of the sites vary widely based on the business activity of the sites - the Optimised Trading & Risk Management team needed to address these within the analysis. The client also needed to set accurate budgets when the contract was signed, ahead of the supply delivery period.
The strategy scoping session concluded appetite for flexibly traded products, aiming to secure competitive energy rates whilst minimising risk to the clients financial position. A full market tender was issued, with focus on ability to reforecast within the contract term. The Optimised Energy Flex Connect product was concluded to best meet the procurement needs identified. Flex Connect gives clients the opportunity to purchase their energy by spreading risk through multiple trades made as part of a group portfolio, whilst also providing access to wider volume tolerance mechanisms than a singular contract term would offer.
Managed within the Optimised Energy Flex Connect product, the client position is circa 9.6% below the 12 month market average of the same trading window, with opportunity to take further advantage should the market fall further. The client is also benefitting from the commercial security of the wider volume tolerance bands in place. The focus moving forward is to proactively forecast the volume requirements with the client in order optimise position and performance of the contract. This client has since widened the relationship, engaging with Optimised on ESOS and carbon compliance services too.
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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