In 2014 Pinguin decided to look outside their 7 year relationship with their incumbent energy consultant, for innovative ways to manage their £3.5m annual energy expenditure.
The objectives included:
After exploring the market for a specialist to take on these challenges Pinguin Foods accepted an energy strategy review from Beond
After several fact-finding meetings, Beond provided Pinguin with a contract reverse engineering exercise and a risk strategy workshop.
The contract reverse engineering exercise revealed hidden risk premiums within the contract and six errors in the incumbent broker offer. The exercise also exposed several factors that would restrict competition and pricing improvements during competitive energy tendering.
During the risk strategy workshop Beond was able to review a variety of hedging scenarios with the Managing Director, Financial Controller and Chief Engineer, to establish the most appropriate risk preferences for their business. The exercise concluded that Pinguin would remove their budget risks and keep it simple by using a fixed price supply contract.
Beond then ran an energy tender with a focus on reducing the cost of energy by running a highly transparent and competitive online reverse auction.
The Energy Strategy Review also examined Pinguin’s energy policies and energy technology opportunities which included issues with CCAs and tolerances for installing solar PV.
All procurement issues were resolved within 3 months of engaging with Beond. This allowed Pinguin Foods to:
“Beond are clearly experts at what they do, but what sets them apart is the ongoing attention paid to our account and their communication with us.”
Arjan Buschman – Finance Director
The procurement results were unequivocal; proving that running a highly transparent and competitive online reverse energy auction can drive down supplier bids to negligible margins (0.01% in this case).
Beond continue to work with Pinguin Foods advising on the markets, carbon compliance and technology risks as they arise.
Beond are a privately owned specialist energy market consultancy – offering innovative and bespoke services to a wide range of energy and carbon consumers. Our business is built on offering tailored energy management and purchasing solutions, supported by our proprietary software and managed by our dedicated team of experts.
Our staff are the key to our success and significant investment has been placed in recruiting and retaining the best talent in the industry sector – with our Consulting Directors holding an average of 20 years’ individual energy market expertise and experience.
With over 500 major energy consumers under management we have an excellent track record in delivering:
For more information regarding our latest innovations please contact the consultancy team on 020 8899 7385.