The cost and purchase
management specialists
Auditel was a founding member of the Utilities Intermediaries Association in 2006.
COSTS WE COVER
Energy
The cost and purchase
Auditel was a founding member of the Utilities Intermediaries Association in 2006.Managing the procurement of
your energy and other business utilities
Utilities costs are a fact of business life, and with rising market prices never has it been so important to manage these outgoings. However, many organisations find that conducting an in-house review fails to completely fulfil savings objectives. Gerald Fox, Partner, KPMG Advisory Services comments, "A worrying nine out of ten [internal cost management] programmes fail to deliver target savings and any gains are often only achieved on a short term basis." Deregulation of the energy markets, price volatility and environmental legislation all make for a particularly complex market, meaning reviews are time consuming, tricky to manage and largely unsuccessful.
Whilst there are numerous agencies, brokers and consultancies promising to conduct reviews and help organisations manage their outgoings, unscrupulous practice means that even after companies have enlisted external help many aren't satisfied with the results. So where can an organisation turn if they are looking for a reputable outsourced expert to manage their utilities?
The solution is simple; choose an accredited independent consultancy like Auditel, with a proven record of managing utility costs.
Because Auditel are accredited, full council members and also founding company members of the Utilities Intermediaries Association we adhere to the written standards produced by this trade association for third party intermediaries. Simply put, this means our clients can be assured that any Auditel review will follow the association's Code of Practice guidelines. What's more, because we're independent in the marketplace and not beholden to preferred suppliers we give our clients the guidance they need based on their specific energy requirements.
An Auditel review can cover any business overhead from communications, energy, water and sewerage and business consumables to premises costs, environmental management, finance and HR. Typically, under the heading of energy we will look at electricity and gas, oil and LPG, as well as energy efficiency and green alternatives.
Business Electricity and Gas
Whatever the cost area, the thorough six step process we undertake is the same. We begin with a retrospective audit to analyse your usage; we then identify areas of overcharging; establish benchmarks for what you are currently paying; identify all areas of savings; make recommendations and, finally, manage your spend in this area for the future.
In terms of electricity and gas we often find that before our involvement clients struggle to fully understand their contracts and billing structures. Although some energy companies are making improvements in the clarity of their contracts and bills there is still a long way to go. Paul Savege, Energywatch Services Manager comments, "The quality of billing and customer service must improve and consumers must be empowered and encouraged to make informed choices". At Auditel, our experience and specialist market knowledge means we can help you make sense of your bills and contracts and give you recommendations about the most appropriate energy supplier for your needs. We can also arrange multisite billing which not only makes bills more comprehensible, but consolidates paperwork to save you time and resources.
As a result of complex bills many companies have unknowingly been paying over the odds for their electricity and gas for many years. This is where our retrospective audit comes in; a thorough review of your expenditure to identify historical overcharges and billing errors. One company we worked with had been paying nearly ten pounds per kVA for their electricity for two years until Auditel spotted the supplier's error. The decimal point had simply been put in the wrong place so instead of being charged 91.3p per kVA, the client was being charged £9.13 per kVA. This resulted in a rebate of over £26,000 from the electricity supplier.
So that we can effectively spot errors like the one highlighted above, we have developed bespoke IT systems to enable us to improve the efficiency of our retrospective audit and cost reviewing exercise.
Green and Renewable Energy Alternatives
As well as addressing the need to manage, and where possible reduce, their energy costs many organisations are also conscious of the need to investigate green and renewable energy sources. Auditel can help your organisation achieve its environmental objectives by recommending suitable suppliers of renewable and green energy and helping you assess the efficiency of your usage. As with other business overheads, we will help you avoid the costly mistakes and frustration that can result from making a wrong decision or selecting "unsuitable" suppliers.
Energy Efficiency
With the pressure on to reduce energy consumption levels, organisations are increasingly looking for ways to improve their energy efficiency. Your dedicated Auditel consultant will help your organisation implement a full energy management programme to identify areas of wastage and inefficiency. This includes weighing up the business and environmental benefits as well as deciphering the impact of government legislation like the Climate Change Levy and Emissions Trading Scheme on your business.
Smart Metering
'Smart metering' is a buzz phrase that is currently attracting press attention. The introduction of smart meters means electricity and gas usage can be more closely monitored to identify consumption in more detail than with a conventional meter. Generally this information can be communicated via a network for monitoring and billing purposes, to increase the accuracy of billing and also to negate the need to read meters. Smart metering is still in its early days but if it is appropriate for your organisations we will liaise with suppliers and manage it's installation for you.
What Next?
In this section we also cover the following topics:
- Tel: 0800 583 3355
- Email: info@auditel.co.uk
Does your energy cost
you more than it should?
It did for the National Motorcycle Museum before they engaged the specialist services of Auditel.
Left to right: Auditel Consultant Stuart Spencer and Nick Hartland Group Development Manager, National Motorcycle Museum.
Auditel's experience came in handy when the National Motorcycle Museum needed to tender for a new energy supplier at a time of exceptionally high market prices. Nick Hartland, Group Development Manager, National Motorcycle Museum comments "Auditel's professional and thorough approach has steered us through this period of sky-rocketing energy prices and helped ensure that our costs are controlled and managed." Savings to date for the museum now exceed £50,000.
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