Energy

A FTSE 250 multi-site retail client was locked into historic energy pricing; Hawtrey Dene recognised the energy market was at a 2.5 year low and there was an opportunity to lock in preferential pricing in advance of current contract expiry, as well as re-align the contract purchase type that had been agreed.

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25%
Annual
SAVING

The Challenge

The client’s energy contracts were due to expire in 6 months’ time, however, Hawtrey Dene recognised that the market was at its lowest price point in 2.5 years and therefore the energy procurement process was best brought forward to lock in beneficial pricing early.

The further challenge was to help the client understand the purchase option that best suited their needs for the future and help negotiate a market that lacks transparency.

The Approach

three energy brokers were invited to present to a panel including the Property Director and scored against a pre-set criteria.

Questions from the panel included strategy recommendations with regard to the energy profile explaining technical delivery of the service, skills and expertise of the team and the benefits of this strategy.

The Solutions

A flexible contract was secured with the preferred energy supplier to lock in preferential rates with the option of exploiting further price reductions, if the market price falls below the initial contract price.

The Benefits

  • The client had a clear view on the energy purchase options (fixed, flexible, half hourly vs non half hourly rates, basket vs standalone contract) in order to make an informed decision to best suit their needs.
  • Following a review the options and position of the market, the client entered into a flexible contract, locking in the current low pricing.
  • This allows for advantage to be taken over wholesale price improvements whilst upward price movements are protected by budget caps and therefore energy can be purchased on a timely basis throughout the term of the contract.
  • The total saving achieved was 25% against previous annual energy spend.

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