The Consultus International Group save Baker Hughes significant money by supporting them on all energy sourcing for their UK operations.
Background
The Consultus International Group and Baker Hughes share common goals on how to improve energy efficiency for the future of our planet.
Baker Hughes are innovators in technology, by developing advanced concepts that have been deployed, to great effect, by the energy industry.
As such a go-to source for oilfield services and equipment, this worldwide company sought a consultant to help them with their energy sourcing and commodity risk management.
This came to the attention of Consultus, who could harness the energy market to meet their needs, both from a supply and budget perspective.
Consultus are managing the electricity and natural gas needs of Baker Hughes’ entire UK portfolio, having started to work with them in 2022.
Solutions
After a smooth mobilisation process, the focus went towards completing procurement to secure electricity and gas supplies, from 2022 to 2024.
Placing a flexible contract for Baker Hughes allowed them to purchase energy in smaller chunks, during the contract period, rather than all at once.
This aligns with Consultus’ risk management strategies, which were tailored to their requirements and include judgement calls, as and when pricing signals are identified.
Consultus’ Risk Management team and their dedicated consultant advise the client with weekly market insights, to build upon their AMP (Actively Managed Purchasing) strategy.
Baker Hughes have utilised Consultus’ Bill Validation service, which has helped them to wipe off erroneous charges relating to CoTs (Change of Tenancy).
These issues arose as Baker Hughes acquired and disposed of sites, as they streamlined their UK assets. A six-figure sum was recovered by Bill Validation.
Outcomes
Consultus have proved that they can add value to Baker Hughes, particularly when it comes to their annual savings target, set for commodity spend.
Those objectives were met for 2023 and are on course to be achieved again, with the client hugely benefitting from flexible purchasing options.
Had they committed to a fixed contract, in 2022, it could have cost them almost twice as much, due to the energy crisis, with a buy and sell function proving to be beneficial.
The performance for them, against a fixed contract, equates to 61 per cent lower on electricity and 37 per cent for gas, which represents high savings.
Consultus are also working on a tender for Baker Hughes’ water portfolio, incorporating AMR metering to help increase water efficiency and reducing cost across the estate.
As an extension of a long-term partnership, Consultus are also looking to assist Baker Hughes with more of their territories internationally, starting with the Republic of Ireland.
How can Consultus support your business? Let’s find out. To contact us, call 0330 221 1000, fill out an enquiry form or utilise the live webchat function. To learn more about us, click here.