Background

When you have 11 UK sites, including 4 manufacturing and processing facilities, energy is a major cost to your organisation. That was the case for this client, whose Board were eager to identify ways of reducing costs and improving efficiency.

They asked Optimised Energy to tender for a Managed Energy Services solution that would include historic cost recovery, energy procurement, Climate Change Agreement (CCA) management and energy efficiency. 

A key requirement for the client was transparency: in supply contracts, budget certainty, safeguarding compliance obligations and identification of savings opportunities.

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Challenge

Existing supply contracts had no cap, seasonal parameters or price benchmarks, and the client had little transparency around fees and trading decisions. Procurement was divorced from CCAs, and very little emphasis was put on invoice validation and reporting.

Quick Facts

Results

A hist oric Due Diligence review identified and recovered 12.9% of 2015 annual energy costs, which we arranged to be directly repaid by suppliers:

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• Optimised Recovery delivered refunds of over £130,000 from a range of complex billing issues despite a bureau service being place prior to our involvement.

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• Our Compliance team continued to oversee CCA’s at 3 sites to protect annual CCL relief of over £60,000 per annum.

• Through the renegotiation of energy supply contracts and deployment of a new trading and risk management strategy, we instantly delivered electricity savings of 14.5% (£37.20/MWh versus a cap of £42/MWh).

• Our Engineers also identified over £90,000 worth of savings from projects including VSD retrofits, LED lighting upgrades, HVAC improvements, and cold store management with a blended payback of 1.5 years. 

“With a new, robust energy management system, our integrated approach to procurement, compliance and energy efficiency has cut costs and reduced risk.”