Manufacture for a range of national supermarkets
Coordinated Procurement and Energy Efficiency strategies
Savings delivered across both supply and demand side
Long term approach to procurement of energy including renewables
Advanced Sustainability program to minimise carbon and water
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.
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.
Our review recommended a trade cap to protect against unexpected price increases. We agreed a new risk policy and transparent trading approach, reviewed regularly against market conditions. And while our analysts got to work recovering historic overcharges, our engineers identified and implemented various energy saving initiatives on site. These included the installation of sub-meters combined with a Monitoring and Targeting system, optimisation of shilled storage areas, reviewing transport fuel efficiency in the fields, and behavioural change in the packing lines.
A historic Due Diligence review identified and recovered 12.9% of 2015 annual energy costs, which we arranged to be directly repaid by suppliers:
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.
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.”
Optimised Energy is uniquely positioned with equal track record in the brokerage market as in the engineering solution and consulting services worlds. Our competition tends to lack the depth in one of these three areas. This means that we are able to offer a true Managed Energy Services offering spanning Sustainability Strategy, Energy Procurement and Energy Efficiency as three key disciplines. There are many synergies to benefit from by combining these areas which have consistently delivered competitive advantage for our clients.
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