Domestic

Case Studies

Sackville Developments (Reading) Limited save over 70% on gas and electricity costs

Client:

Sackville Developments (Reading) Limited (SDRL) is a subsidiary of Sackville Properties, a property investment and development company, whose Chairman is Sir John Madejski OBE DL, Chairman of Reading Football Club.

Situation:

SDRL owns a mixed use development site of approximately 5.1 acres in Reading which includes offices, an NCP Car Park, retail outlets and several leisure facilities.

Business Cost Consultants (BCC) was appointed by SDRL in December 2007 to assist with the administrative burden of managing the numerous utility supplies across the site, most of which were out of contract and required both a significant time input and a greater level of understanding of industry jargon than was available to SDRL in orderto bring them under tighter and more economic cost controls.

Strategy:

The team at BCC was able to examine the client’s utilities in minute details in order to identify potential savings in gas and electricity costs. One of the ways the team at BCC secured savings for SDRL was to negotiate rebates for previously unknown overcharges, as well as cost savings through contract negotiations going forward.

Essentially, BCC deal with numerous energy suppliers on behalf of clients and manage all the necessary processes in order to secure maximum cost savings.

Results:

BCC was successful in securing adjustments to the electricity supply at several properties, which resulted in reducing electricity capacity costs by 27.2%. Furthermore, the team negotiated very competitive pricing going forward. In providing this service, BCC secured a significant saving for SDRL, equivalent to 34% of their previous years spend across the site.

In addition to the savings described above, BCC reached resolution over two long standing disputes between SDRL and two different suppliers, resulting from the suppliers not invoicing SDRL for a number of years after the site was acquired.

To date, through the recovery of overcharges and a rebate, BCC have achieved a saving for SDRL in their annual gas and electricity costs of a massive 74.7%. There have been significant cash and time savings for our client and we are currently working on further reducing costs through several other opportunities we have identified on their behalf.

“We appointed BCC to manage and oversee the utilities across our site in Reading, as we recognised we required expert assistance in order to fully understand the position with regard to the various utility companies serving the site and to achieve savings, both in terms of administrative time and costs. Our experience of BCC is that they are a most efficient organisation, employing very helpful and knowledgeable staff, thereby removing the burden for SDRL to need to understand the complexities of the utilities market, which falls outside of our level of expertise. We know we can rely on BCC to achieve maximum savings on our behalf and to monitor supplies and negotiate contracts to our best advantage.”

Wendy Lewis, Property Manager

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