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Utilities & Environmental

Companies Should be Taking Control of Energy Procurement

By 6th November 2012February 15th, 2022No Comments



Posted by:
Adrian Burton

In the November 12 edition of the Birmingham Chamberlink magazine Wayne Mitchell (Markets Director – nPower) gave an interesting insight into the ways SME’s undertake energy procurement, and the opportunities they were missing to reduce costs.

Wayne’s article was based on studies conducted by npower. In the first study they consulted with medium sized businesses (average spend £180K on energy a year) and found only 4 % had a dedicated energy specialist.

Given the importance being placed on rising energy costs npower wanted to understand further the pressures facing medium size businesses when procuring energy and interviewed a further 200 companies.

What they discovered was in 9 out of 10 companies that had employed an energy specialist they were now benefiting from cost savings.

The report discovered that the person usually given the responsibility for energy procurement was the office manager, who had to juggle these duties with a host of others.

The findings also identified only 21% of companies polled actually had any energy strategy, meaning that procurement and contract renewals were not being planned effectively, even though energy was ranked as the second highest business risk facing companies.

The report further suggested that energy management should actually be a board level concern.

At Auditel we firmly believe that companies miss opportunities to reduce costs as the npower findings highlight those given the responsibility to undertake the energy procurement seldom have the time, lack industry knowledge, and lack benchmark pricing information on which to make an informed decision.

Auditel can provide the expertise to fill the gap left in businesses by the lack of an energy specialist, without the need for a full time employee.

Auditel has been assisting businesses for over 18 years, and is able to provide the impartial advice that many medium size businesses require to ensure cost effective procurement and management of the energy spend.