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 Octego 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.
Contract Term: 01/10/16 – 30/09/19
Annual Consumption: 8.5 GWh
Due Diligence: 12.9%
Energy Procurement: 14.5%
CCA Management: 2.0%