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Energy Purchasing & Invoice Validation

Services to improve energy purchasing, ensure that invoicing is correct and audit past invoicing to obtain any refunds due over the past six years

 
Introduction

In today’s volatile and internationally driven energy markets, our clients greatly value the reliability, knowledge, guidance and understanding that we provide.  The Green Consultancy delivers Energy Purchasing & Invoice Validation in partnership with a leading Energy Purchasing Consultancy.  They have been providing these services since 1986 and:

• Were the first in the UK to introduce a ‘retainer fee’ approach to charging clients.  Many competitors offer ‘free’ services with hidden costs, but the retainer-fee approach allows clients to enjoy the full benefit of the cost savings that the services deliver
• Provide honest, independent, intelligent and friendly advice covering electricity, gas, water and alternative energy sources across all sizes of portfolios, from single site to multi site, and across all manner of operations
• Work hard to manage clients’ risks, ensuring transparency, delivering protection from bullish markets and benefit from bearish markets
• Enjoy exceptionally strong relationships with senior management at all major suppliers, which helps to deliver outstanding negotiation results for clients
• Have over 300 clients who, between them, have over 20,000 sites

In the last 12 months, they have:

• Undertaken over 82,000 contract evaluations
• Secured prices for electricity contracts that are an average of 19.5% below those that clients could achieve, and gas contracts that are an average of 29% below
• Achieved an average of 20% cost reduction, net of all fees
• Saved clients over £24 million through energy procurement service
• Secured over £2.5 million of refunds from Query Management and Historical Audit services
• Resolved 78,000 billing queries – 82% of all supplier invoices failed its comprehensive validation process. 

 
Services

We offer three Energy Purchasing and Invoice Validation services:

• Energy Procurement
• Invoice Validation
• Historical Audit

These services are described in detail below.  They are equally beneficial to single-site and to multi-site clients of all sizes, in all sectors.  Often the challenges faced by one industry are very similar to those faced by a seemingly very different industry.  Our partner’s long track record – and their range of activity and operation –ensures that all the experience and knowledge they gather benefits all their clients.

The type and frequency of reporting, meetings and other involvement are a matter of client choice.  All clients have an account manager.  Some clients choose monthly meetings and some choose none.  Some clients need regular negotiation updates and strategic feedback, while some give a letter of authorisation to accept contacts on their behalf and a report is provided afterwards. 

All clients receive a cost and consumption report per site, and half-hourly data report.  Over 300 reports are available, including forecasting reports.

Fees for Energy Procurement and Invoice Validation are based on the number of metered supplies.  Historical Audits are carried out on a no savings, no fee shared-savings basis.

Energy Procurement

Electricity, gas and water supply contracts are negotiated purely on the basis of best value for you, with no hidden costs or considerations.  Whether you require risk-free contracts or base-load power purchasing, hedging, multi-purchasing points or daily purchasing, the following procurement principles underpin all actions:

• Face-to-face negotiation
• Strong and independent supplier relationships
• Value delivered from suppliers through service charters and service leagues
• Strong understanding of the markets and supplier drivers
• Bottom-line negotiations at all times
• Incorporation of metering and data collection strategies to support negotiations

The approach and promise of the most beneficial price and pricing structure puts you at the heart of negotiations, with flexible, fixed and varied term contracts being secured daily.
 
Invoice Validation: Energy and Water

Every invoice is checked for the accuracy of over 80 pieces of information including your historic consumption data (82% of all supplier invoices fail this comprehensive validation process).

Overcharges are resolved with the supplier and a correct invoice obtained.  In the case of undercharges, the options and likely outcome are discussed with the client – and, as a minimum, they will be advised to accrue the amount if applicable.

All queries are managed and resolved with agreed reporting, commentary and meetings with the client’s Account Manager.  Overcharges happen very frequently. 

For example, our client P&O Estates recently had an estimated invoice for the meter in a closed-off area of a building.  Addressing this overcharge achieved a saving in excess of £10,000.

Historical Audit: No Savings, No Fee

If your energy and water invoices have not been checked professionally, we strongly recommend our six-year historical audit as it will identify any past overcharging.  As noted above, 82% of all supplier invoices fail the comprehensive validation process.

This service is provided on a shared savings basis so, for a given supplier across your whole estate, if there is no net saving identified, you have both the satisfaction of knowing that you have not overpaid and of knowing that you will not incur further cost.

We recently obtained over £250,000 in refunds the UK's leading home and general merchandise retailer (who previously had a policy not to use consultants).  
 

Clients and Client Comments

Over 300 clients – with over 20,000 sites between them – benefit from these services.  They include many well-known names such 3663, Argos, Brantano, Cineworld, Compass Group, Costa, Homebase, Ikea, Kenning, Moto, Nationwide Autocentre, Netto, P&O, Ramada, The Restaurant Group and Travelodge.

The client retention rate is 85% and the average service length is eight years.  We thank all the following clients for their endorsements and for their permission to include their comments in this document.

“In this present volatile and unstable market place, it’s good to know that you are on our side providing a service which enables the customer to understand the complexities of managing utility companies and their billing partners.”
Rob Embleton, Novus Leisure
 
“They listened to what we wanted and then worked with the suppliers and ourselves to reconcile our requirements to the opportunities available to us, rather than expect us to change to an off-the-shelf product that suited either the suppliers or the consultant.”
Roy Badcock, Cambridge Building Society

“They have been working with Macdonald Hotels since 1998 and have successfully tendered both gas and electricity during that time.  More importantly, they provide us with highly valuable monthly reporting that allows us to monitor utility consumption and focus on energy saving initiatives.  Since the volatility of the markets in 2007, they have been proactive in working with us to review all feasible options for contracting, rather than just a fixed-contract approach.  This has allowed us to fix at the appropriate time to limit the financial risks that would have otherwise taken place.  They have a proactive and professional approach in this very volatile market and react responsively, presenting solutions to problems rather than issues.”
Nicola Day, Purchasing Director Macdonald Hotels & Resorts
 
 
“They have assisted over the years in resolving several ongoing disputes with the energy suppliers, including negotiating substantial settlements.  Their account management approach to our account has helped us develop a close working partnership, and they are now viewed as our in-house energy department.”
Peter Nutbrown, QFM (one of many KFC franchisee clients)

 
“They have been our energy consultants since September 2000.  In that time they have provided complete energy management and consultancy services to our portfolio.  This includes working with us to develop an ongoing energy procurement strategy and complete management of our utility administration procedures, including advice on ever changing legislation.  To have this area of the business managed so effectively and comprehensively has been comforting to the business and has enabled me to focus on other areas of priority.”
Dave Jones, Baylis