Challenge

Having just taken over this customers’ portfolio right before the COVID-19 pandemic hit, our client was keen to ensure we procured the very best rates on the market as well as covering the business’ sustainability KPI by making sure their new supplier sourced energy from renewables. Our challenge was to make sure we sourced green energy contracts at a competitive rate in a volatile energy market caused by the uncertainty of the impact the pandemic.

Strategy

Our approach for this customer included procuring green energy contracts that met the business’ budget and sustainability KPI and ensured the smooth transition of all meters to one common supplier and contract end date. We also liaised with their current supplier on their behalf to transfer current meters over to the new supplier who offered the most competitive green energy rates.

Outcome

In addition to sourcing competitive green energy contracts and orchestrating the transfer between suppliers, our Finance Manager identified that our client was paying incorrect VAT amount on all historical bills. We quickly moved them to 5% VAT from the full rate of 20%, which created an additional savings as well as recovering approximately 12.5% of incorrect historical VAT costs for the client. We also discovered that their previous supplier had mistakenly moved our client onto an out of contract rate for their final bill which resulted in a further financial refund.

Challenge

Our main challenge for this property management customer was combining a complete siteworks project management plan to organise new meter installs for their flat conversion projects along with a procurement strategy that aligned all tenant contracts to one supplier with a single common end date and ensure competitive energy prices were obtained. In addition, this customers’ business sustainability targets included the installation of EV charging points and the management of government OZEV grants.

Strategy

Logical Utilities account and project management team orchestrated the install of new meters for their flat conversion projects and organised the install and OZEV government grant for their EV charging point installation project. We also devised a streamlined procurement strategy that aligned their billing data to one supplier and common end date, provided ongoing support and management for change of tenancies and gave them access to our customer portal, Eos, so they are able to remotely access all of invoice and billing data for each of their sites.

Outcome

Through a combination of understanding the requirements of this business’ KPI’s, industry, sustainability drivers and siteworks projects, Logical Utilities were able to provide a streamlined approach to managing their portfolio. We supervise all of their siteworks projects, meter installs, EV charge point installation, change of tenancies, manage billing data and liaise with third party contractors, helping this organisation to reduce the strain off their internal finance and property departments.

Challenge

Traditionally this customer had utilised fixed price contracts but were faced with an average increase of 22% across their gas and electricity renewals if they were to continue with their current energy procurement strategy.

We took on the challenge to ensure this customer obtained the best price during the challenging market conditions.

Strategy

We devised a strategy that would allow multiple purchasing decisions throughout the contract duration, instead of a single lock-out that a fixed contract would have provided.

We achieved this by placing their gas and electricity onto Hybrid contracts whilst markets were slowly recovering from a 10-year high.

Outcome

Through a combination of understanding this customers’ and their industry and utilising a risk management strategy, we were able to design a bespoke procurement plan comprising of a month-ahead purchasing strategy.

As a result, we delivered savings of 17% for power and 29% for gas when compared to a fixed price contract, which totalled to £322,000 annual savings.

Challenge

This traditional UK brewery have been a loyal, valued customer for over 4 years and sought us to re-think, re-build, and revitalize every facet of their procurement and bill validation process. After being on a combination of fully-flex and fixed contracts, they were looking to reassess their strategy from scratch and ensure cost savings were made.

Strategy

We encompassed a detailed procurement and trading strategy, along with full bureau validation and reporting services to deliver a complete energy package across our clients’ portfolio of 179 national pubs and hotels. Our Bureau Team carried out a full audit to investigate historical invoicing, while our trading specialists introduced them to our TECC^® basket, which ensured competitive prices were procured.

Outcome

As a result, this company reaped the benefits of annual savings of over 8% off their energy expenditure through our in-depth, tailor-made trading strategy that we designed for them.

As well as this, another 10% had been recovered from an extensive site-wide audit across their entire portfolio, which was carried out by our experienced Bureau Team, who highlighted several metering queries, VAT and CCL over-charges.

Challenge

This well-known retailer’s market insight and trading activity for flexible contracts was non-existent, with no commodity hedged from September 2018 onwards and no advice communicated for the 27% pass-through cost increase. Our challenge was to inherit and service flexible contracts for the remaining 12 months and provide cost-effective mechanisms protecting against future non-commodity rises for the October 2019 contract renewals.

Strategy

By building a strategy that included agreeing Hybrid contracts for Oct-19 to Sept-22 allowed this customer multiple opportunities to purchase commodity throughout the contract. More importantly, we fixed-out all non-commodity costs for the entire 3-year duration. Our in-house trading team took ownership of the existing flexible contracts and traded alongside the negotiated Hybrid renewals.

Outcome

By utilising TECC^® we were able to negotiate and secure a starting position of £1.4m lower than the incumbent consultant’s proposal.

A highly successful risk management strategy provided a £8.8m starting position for the year 2019 and with effective trading performance, we’ve now secured a position of £7.7m, saving this customer 12% off their overall energy expenditure.

Challenge

This customer did not have an energy management strategy in place and contracts were agreed per site leaving an array of different suppliers, contract ends dates and rates across their 864+ sites. Our challenge was to design a strategy that aligned all contracts to one supplier with a single common end date and ensure competitive energy prices were obtained. In addition, all new franchise sites added in the future needed to follow the same protocol and fall in-line with the main portfolio.

Strategy

Logical Utilities devised a bespoke energy procurement and portfolio management strategy to help this customer manage their extensive portfolio across the UK of over 864 sites. Our strategy was to combine their energy contracts for each site into one, easy to manage package, align all contracts to one common end date and provide ongoing support and management for on-boarding new franchised sites.

Outcome

Through a combination of understanding the requirements of this business’ KPI’s and industry sector, we were able to provide a streamlined approach to managing their portfolio by orchestrating the 864+ sites of varying suppliers and contracts ends dates to one common denominator and help to reduce the pressure off their finance and property departments.

In addition, we were able to secure a saving of 15% across their portfolio in the UK by utilising TECC^® and as an added bonus we gifted this business’ HQ for every new franchised site added to their inventory after implementing our procurement and management strategy to the main portfolio.