How to Manage Multi-Site Energy Supplies
Read the full story here: Goodwin Case Study
Multiple Meters, Multiple Supply Sites, Multiple Suppliers, Multiple Contracts and Multiple Contract End Dates.
When Goodwin Trust engaged with the Touchstone/Locality Energy Action Group energy procurement program they were struggling under the weight of almost 50 separate supplies and a shrinking budget to manage the often tedious and detailed work of energy contract renewals. As a result many contract Termination Dates were being missed and supplies were being rolled-over onto extremely costly tariffs.
Furthermore, the administrative burden was high with numerous negotiations occurring, sometimes as many as 2 or 3 at a time. Even though Goodwin were large consumers of both gas and electricity they were unable to leverage preferential pricing because contracts were entered into on an ad hoc basis without being able to combine the consumption. The net result was an increasing level of costly energy supplies and an administrative burden that in itself would prove expensive to resource.
The long-term objective is to enable Goodwin Trust to procure all its energy via the Touchstone/Locality ‘Energy Action Group’ but given the initial level of disarray it was clear that an urgent ‘housekeeping’ exercise was required. This involved auditing every single supply and gathering all the relevant meter and consumption details and verifying current contract end dates.
It was found that a lot of supplies were on ‘out of contract rates’ which means they were able to escape quickly from these supplies. Out of Contract tariffs are the worst there are and can be more than double a supplier’s standard tariff. In Goodwin’s case it meant they were sometimes paying 8 pence per kilowatt hour for gas and 27 pence for electricity.
Within a short space of time we were able to extricate Goodwin from most of these exorbitant rates and replace them with cost effective short-term contracts designed to align with the other Members of the Energy Buying Group. This is still a work in progress with a lot of their supplies still to gather in but impressive savings in the region of £40,000 have been achieved in the first 8 months of this long-term program. The ongoing project relies on closely monitoring the remaining contracts and ensuring that termination is submitted in a timely manner and all supplies are added to the Group Contract until there is one single date for all gas and electricity renewals.
Read the full story here: Goodwin Trust Energy Buying