We’ve locked in savings vs budget of 31% which amounts to £931,538 since the contract started in 2015.
For larger energy users, a flexible contract is an attractive procurement solution as it allows businesses to take advantage of a volatile energy market and capitalise on the market highs and lows. Flexible tenders are in-depth and often include complex terms and conditions.
In addition to this there can be multiple products available with differing degrees of flexibility so it’s essential to find the right contract for your business.
Utilitywise works with Heathcoat Fabrics and provides a Risk Management service for their gas supply. The right contract was chosen following a thorough consultation to determine and prioritise the most important features to suit their business needs.
These key deliverables can be anything from contract features and functionality to client specific requirements and trading capability.
About Heathcoat Fabrics Limited
Prior to the start of the contract, a Risk Management committee was established between Utilitywise and Heathcoat to formalise the relationship, agree on strategy and outline the trading principles. This was formalised in a Risk Management Policy which is critical to trading execution and defines the requirements from each party. The Policy is reviewed each year and strategy meetings are more frequent to ensure contract performance.
To maximise the potential savings in the flexible energy contract, Heathcoat Fabrics has a team of experts to support them. A Risk Management Consultant offers ongoing advice and a dedicated Energy Trader is committed solely to tracking the market and making their trades.
To date we have locked in savings of 31% vs budget for their 32 month gas contract beginning in 2015. This equates to £931,538 and we are currently £1,009,606 below their original budget. Since February 2014 we have locked in savings vs original position of £893,445. Weekly position reports provide the client with key information on completion of trades.
Heathcoat Fabrics are very environmentally aware, creating solar power on site with hydro power expected to go live in summer 2017. In addition to this, they have their own CHP plant. They are currently in the process of replacing this with a newer model and the Utilitywise team are fully involved and in communication with the supplier to ensure the process is smooth and there is limited disruption to their supply.
“We appointed Utilitywise to be our procurement consultant in Spring 2012. Since then they have tendered and negotiated a number of new energy contracts on our behalf, as well as advising on strategy and more general energy queries. We spend over £2.2 million a year on energy so it was important that our chosen consultant was as good as the sales pitch and could deliver the services we required. Our Account Management team is knowledgeable of the industry, they respond quickly to queries, liaise with suppliers on our behalf and give good advice on any issues we have. The Market Intelligence is also an invaluable element of the service keeping me up to date with what is happening in the world of energy in terms of price movements.”
Business Project Manager, Heathcoat Fabrics Limited