Domestic

Case Studies

London-based pub company resolve gas dispute with supplier and make savings on electricity and gas

Client:

The Meredith Group is London’s quintessential Fine Dining Pub company. The Group opened their first pub in 2003 taking over and redeveloping what became The House in North London. They also own another dining pub, The Only Running Footman, just off Berkeley Square, Mayfair as well as The Portman in Marylebone, west London. At the time of Business Cost Consultants’ appointment, the group had an additional venue in Highgate, North London.

Situation:

In 2008, The Meredith Group’s gas supplier raised invoices for undercharges dating back to 2006, totalling £55,000. Given that we were and still are in a tight economic environment, The Meredith Group needed expert advice to negotiate this cost and so appointed BCC to help.

BCC not only managed the supplier dispute for the client but also provided a full review of electricity and gas usage in order to identify ways to reduce utility costs.

Strategy:

BCC immediately set to work resolving the large gas dispute with the supplier. The supplier’s calculation of the amount owed was accurate. The supplier was entitled to pursue the full balance. For several months BCC’s experts negotiated with the supplier in order to write off some, if not all, of this debt.

Following BCC’s utility review, the client was also provided with a detailed report highlighting areas in which savings could be made.

Upon review of the bills BCC realised that in comparison to other similar venues, the tariffs applied to each site were uncompetitive. Their experts monitored the market and recommended the best time to put the supply contracts out to tender in advance of renewal dates, as well as provided guidance on suitable tariffs. They also provided recommendations on ways to reduce energy consumption, as well as resolved all billing errors.

Result:

Following lengthy negotiations over a period of three months and despite the hard line taken by the supplier, BCC were ultimately able to secure the supplier’s agreement to write off £7,749 (14%) of the debt plus an interest free 12 month payback plan. In addition, BCC’s team negotiated competitive supply contracts going forward and arranged the rates to be backdated to the end of the previous contract resulting in savings of over £30,000, not taking into account the savings in staff time.

BCC continue to work with The Meredith Group to identify areas for further savings. BCC have provided recommendations on ways to monitor consumption, as well as assist with budgeting & forecasting, which is particularly useful prior to the company year end.

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