Case Studies

Here are a number of illustrations of how the ESS programme has secured financial savings and refunds in a variety of industries.

• Education
• Leisure
• Manufacturing
• Property
• Retail 

 Education - An independent preparatory school in the Home Counties

Whilst the school was generally happy with their arrangements the ESS approach was met positively on a "nothing ventured - nothing gained" basis. The initial audit showed that the school was locked into a pooled arrangement for gas purchasing upon which ESS has and will regularly report competitiveness and provide alternative opportunities as appropriate. The renewal offer from the incumbent electricity supplier was tested in the market for competitiveness and although a very small saving was achievable the school decided quite rightly to stay with their existing supplier.

The client was reassured that their pricing had been independently audited and were happy that future billing would be monitored for accuracy as part of the programme.

Leisure - A private member golf club in the North of England

The client attended a regional meeting of the GCMA at which ESS had been invited to present. During a follow up meeting a quick decision was made to engage ESS which proved very timely. The main electricity supply had just "rolled over"; although no longer free to move suppliers, ESS negotiated with the incumbent supplier who eventually matched competitive market rates with a back dated improved renewal offer even though they were not contractually obliged to do so. The client's renewals are now logged on the ESS system so that in future years an orderly tendering exercise will be applied to all supplies in good time.

Reduction of over 14% on annual electricity bill.

Leisure – A London Group of Health Clubs

A private group of health clubs with city centre locations was stunned at the cost of energy at a new acquisition made some months before. Whilst the owners were able to concentrate on vital marketing and personnel issues, ESS quickly dealt with the energy costs where out of contract rates were in force.

By tendering the supply widely, ESS was able to gather competitive alternatives which were then used to negotiate with the incumbent supplier. Whilst the revised pricing was still not as competitive, ESS negotiated a back date to the original contract renewal date, resulting in a credit which more than compensated for the slightly higher rate over the term of the forward contract.

The final result rescued an otherwise poor position but more importantly the possibility of such a situation reoccurring was completely eliminated by engaging ESS whose responsibility it became to monitor contract end dates and serve notice to suppliers.

Result: Initial saving on electricity supply 31% 
 

Manufacturing - A major manufacturer of packaging materials located in the South of England

The client approached ESS through the internet. Our fee structure was attractive, with no up-front charges and a lower than industry standard level of participation in savings and refunds.

The client was coming out of an electricity supply agreement which covered a period during which prices had risen considerably and their renewal offer would have resulted in an increase of over 40%. ESS tendered the supply and after negotiation the final price achieved resulted in a significantly lower increase of 22%. Four years on, the competitiveness of the various electricity and gas supplies serving the extended site have been tested regularly and savings continue to be achieved.

Continued savings since 2004.

Manufacturing - Major multi-national with head office in London

This City based multi-national engaged ESS to assist with energy purchasing. The client elected to pursue 'green' options and ESS secured a number of 'green' energy contracts at highly competitive prices.

11% saving over initial 'green' contract offer.

Property - An expanding group of Nursing Homes operating multiple locations across the Midlands

The client was well aware of the opportunities offered by the deregulated energy market but management resources were devoted to integrating new acquisitions which involved many staffing, compliance and marketing issues. Within a month, ESS brought together a concise report summarising the utility costs for each property.

Opportunities were identified to improve pricing and where possible suppliers were rationalised to simplify future administration. All the work required to take advantage of improved pricing was handled by ESS and the client was able to concentrate on their key activities.

Annual savings so far in excess of 8%

Retail - A Group of Multi Site Travel Agencies

A travel agency with a number of sites across the Home Counties had no previous experience of third party procurement but was pursuaded through a referral and a “nothing to lose attitude” to try the consultancy route.

As is often the case, the sites had various suppliers each with different contractual renewal dates and prices.  A plan was initiated to consolidate the supplies to provide a common contract end date and immediate savings of 12% were achieved across their electricity and gas costs.

With ESS continuing to monitor and report on cost and consumption, the budgeting process was greatly improved at the business.

Result: An initial saving of 12% across the sites.