In July 2020, Consultus International was contracted by a large manufacturing organisation in North Hertfordshire to take care of both their gas and electricity agreements. The manufacturer was looking to secure the best contract to fit their business and to make significant cost savings wherever possible.
Consultus advised them to opt for the Consultus Actively Managed Purchasing Strategy (AMP) product, which utilises a series of prescribed algorithms to assess settlement prices over moving ranges with a view to understanding when to hedge and un-hedge for price advantage. Unique to Consultus, AMP benefits from specific terms in the electricity and gas contracts which allow this degree of activity.
After receiving this recommendation, the manufacturer agreed an initial three-year contract to run from 2021 to 2024 for both electricity and gas. Following on from the immediate progress made, it has arranged to extend the contract by a further three years, for the period 2024-2027.
The reported savings will be significant, with £4.1m saved in electricity costs and £0.7m in gas, making a total saving of £4.8m.
An opportunity to consolidate suppliers to ensure a more streamlined utility billing process was also identified and the client instructed Consultus to take on the contract for their water supply up to 2027. This has resulted in additional cost savings and resource efficiencies for the client.
To identify further potential cost savings and refunds, the client is utilising the Consultus Paycheck service to review historical electricity, gas and water bills. The Paycheck service involves an experienced team investigating and looking to obtain refunds, credits and/or secure future cost savings, where possible.