Gas cost savings
Do you want cheaper gas for your organisation, whilst also saving you and your staff time?
As independent gas consultants we can help you purchase cheaper gas services and even manage them for you. On average Business Cost Consultants save our clients between 5 and 15% on their gas bills. If you are interested in enjoying similar savings, or just want independent advice, please read on.
To obtain the best prices you need to know:
- the details of your gas profile for at least 12 months;
- how to present the data;
- which suppliers are likely to be more competitive; and
- when is the best time of the year to go to the market.
For example, in each of the years 2004, 2005 and 2006 the differences between the lowest and the highest points in the UK gas market prices were over 100%. If you had simply waited until a few months before your gas supply contract was due for renewal (as most people do) and gone to seek prices, you would have paid up to 100% more than if you had used our market intelligence and our expertise to judge when was a good time to enter the market.
The energy markets in the UK have become like stock markets. How are energy prices likely to move? Should you enter into a flexible contract which fluctuates, daily, weekly or monthly? Should you enter into a 12 month, 18 month, two, three or 5 year fixed priced supply agreement? We think that you will do best by seeking guidance from our experts, before purchasing your energy contracts. Gas and electricity prices in the UK have been quite closely aligned and are likely to continue that way for the foreseeable future.
Tendering is possible for larger sites and several smaller sites. In most cases suppliers will quote a price according to a fixed price matrix. Business Cost Consultants have the expertise and experience to know which suppliers are more likely to be interested in your gas site profiles.
Again, the difficult part is in knowing how best to present your gas profile and load factor to suppliers, knowing which suppliers are likely to be interested in your site or sites and knowing when to go to the gas market.
If you have large numbers of sites Business Cost Consultants can also arrange for online tendering. We carefully cleanse your data and present it to a number of interested suppliers. They are then invited to submit tenders, which can be reviewed up until the closing date and time.
Local Authority Considerations: Local Authorities, government departments and hospital authorities face a number of challenges. The most challenging in many respects is making sure that the procurement process is compliant with Standing Orders and that they’re not anti-competitive (i.e. including all suppliers available to quote). Local Authorities now have to work in a commodity market that doesn’t necessarily fit with their terms and conditions, so the buyer has to best fit the council’s Terms and Conditions with the Suppliers Terms and Conditions. Business Cost Consultants ensure that the tendering process is compliant with the OJEC (Official Journal of the European Communities) Regulations.
Resources: In many organisations, the people that deal with the procurement of energy are not normally full-time energy managers. Business Cost Consultants often work with finance directors, mechanical engineers, facilities or maintenance managers who have been tasked with managing the purchase of energy. He or she will have many other priorities which demand attention. Since it is not those people’s full time job, they are not in a position to watch movements and changes in commodity markets or to study market intelligence on a daily basis.
Business Cost Consultants can also help ensure your sites are paying VAT and the Climate Change Levy at the correct rates.
To find out how we saved The Morris Furniture Group over £54,000, see the Morris case study.
What we do
Supply contracts
Business Cost Consultants evaluate the gas consumption data (mains or LPG) for your organisation, draw up a tender document, send it to the suppliers most interested in your energy profile, compare and contrast the offers and then vet the contract terms offered. This process ensures you get a clean contract, a good service and the best price available. We then track your energy consumption over the period of your contract and suggest any changes where appropriate.
Meter changes
The size of your gas meter directly affects the price you pay; many sites have meters that are oversized, which can result in a needless expense to your organisation. We can calculate your exact load requirements and arrange to have the correct meter installed, which will save you money year after year.
Fuel conversion
If you are considering conversion to mains natural gas or to LPG, we can give you totally independent advice and co-ordinate the whole project from appraisal to completion of the project. Converting to a new fuel can sometimes significantly reduce your fuel costs your boiler servicing costs and your boiler emissions.
Often we can save clients thousands of pounds by reducing the cost of installing new fuel supplies and/or converting boilers and other equipment. See the James Fleming case study.
Analysis of historic data
Many organisations are paying needless charges year on year. Business Cost Consultants will carry out a full technical analysis of historic consumption data and costs, identify unnecessary expenditure and implement cost saving solutions quickly — saving you time and money. That has produced large rebates for some of our clients.
Tariff analysis
Are all of your sites on the correct tariffs?
Many sites are not. We may be able to create significant savings for you by accurately matching how you operate to the most appropriate tariff.
Tracking energy consumption
Business Cost Consultants use smart meters, smart data loggers and specially developed software to keep track of your gas consumption and costs. That allows us to easily spot anomalies such as higher or lower than expected consumption. We can then help you investigate the reasons for those anomalies by analysing the data and, if necessary, sending our experts on to your sites.
Auditing gas bills
Gas bills can be complex. For most of our clients we check their bills before sending them on for payment. We also collect actual consumption figures on a monthly basis. This ensures that you only pay for the gas you actually use, not estimated consumption.
Disputes with suppliers
Many clients wasted weeks, months or years in disputes with suppliers before using our services. Some gave up almost immediately and paid charges which they felt were unreasonable, before using our services. We deal with all types of disputes with suppliers. That saves our clients much time, hassle and money.
Upgrading or installing new gas supplies
Business Cost Consultants can sometimes save clients thousands of pounds on the costs of installing new gas supplies. Sometimes it pays to combine several supplies on the one meter.
Energy conservation
If you are concerned about the amount of energy consumed we can normally arrange for a free energy audit and report which will help you reduce gas consumption and hence help reduce global warming due to the overproduction of carbon dioxide. The other main benefit of the energy audit is to save you money.
To find out how we saved James Fleming & Company Ltd. in excess of £42,000, see the James Fleming case study.
Still not sure?
Check out some of the problems we have solved for our clients.
Alternatively contact us today to find out how we can help your organisation to save time and money.