This large metal manufacturerprovides innovative technical solutions for the metal recyclying industry. Large increases in renewal prices started to affect their financial projections. The client was looking forways to mitigate these future increases through procurement and energy management solutions.
After advising the client around energy procurement options, Inenco also identified additional options available to reduce the client's energy costs. Initially the client was unware of the financial benefits of schemes such as EII (Energy Intensive Idustries) exemption, CCA (Climate Change Agreement) management, invoice validation and streamlined reporting to their business.
Step 1 - A new approach
First, Inenco proposed to trade under a wholesale risk managed strategy, giving the client certainty, whilst also allowing flexibility from any downward market movement.
Step 2 - Long term visibility
To suppliment the procurement offering, theclient also required more visibility of cost and consumption usage to help with forecasting when setting accurate budgets.
Step 3 - Streamlining data
Moving the client over to our digital portalallowed them to view all their information in a relevant format at the touch of a button.Streamlining their data aided simpler energy management.
Step 4 - EII & CCA management
We identified an opportunity for the client to joina new scheme for EII which would allow them to claim relief on some non-commodity costs of upto 85%.
Firs lt, we aligned the client's December renewal date with our portfolio and renegotiated a temporary fixed price contract to align the client's end date with our portfolio start, whilst ensuring they were protected from market increases. Inenco's invoice validation and bureau services allowed the client to budget more accuratley, further into the future and ensure monthly that the invoicing is correct and the finance department within had accrued the correct amount. To ensure further compliance with another voluntary scheme (CCA) Inenco provided atailored approach to ongoing compliance andin turn, secured savings on their CCA whilst providing technical advice throughout this process. We worked with the client to develop an energy strategy that included procurement, bureau services and relevant compliance schemes torealised annual savings of £153,707, which is a 25% reduction on their overall energy cost. By understanding their energy intensiveprocesses, we quickly implemented a joinedup, tailored solution. This meant the client has managed to protect themselves from increased volatility in energy prices, while also securing and ensuring annual compliance savings of £199,114 (30.88%) of their annual electricity spend.
"Inenco consulted us regarding some opportunities for us to bettermanage our energy costs moving forward. They quickly developed a tailored solution that allows us to claim relief on certain renewables taxes, budget much more accuratley and mitigate any future price increases. They regularly keep us up to date with the market and continue to raise ideas or measures for us to save money or reduce costs"
13 December 2019Back to list