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Charity locks away over £190,000 in energy procurement savings

Our Client

The Salvation Army Housing Association (SAHA) provide support and accommodation across England for over 6,000 young and vulnerable service users annually. In September 2017, SAHA merged with Chapter 1 Charity Ltd allowing the two organisations to combine their strengths and support more individuals in local communities.

Their energy estate comprises of over 200 commercial meters supplying circa £350,000 of gas and electricity to student accommodation, homeless services and residential homes.

In May 2016 SAHA decided to look outside their long-standing energy broker relationship for more
value in terms of bureau service delivery and procurement savings.

Our Challenge

In March 2017 Beond began the mobilisation of the Chapter 1 portfolio to find the majority of their gas and electricity meters to be tied into long term contracts on extremely uncompetitive rates.

Having run a successful competitive procurement exercise for SAHA our main challenge was to mirror this success for the Chapter 1 portfolio whilst avoiding any early termination penalties imposed by the incumbent energy supplier.

This required a data cleansing exercise followed by the careful management of a number of change of tenancies and eventual transfer to the winning supplier.

Our Objectives

  • Reduce the overall gas and electricity spend.
  • Understand and deliver the billing and reporting requirements of the charity.
  • End to end management of change of tenancies.
  • Delivering competitive co-terminus supply contracts for site additions.
  • Manage an AMR roll out for NHH and gas supplies.
  • Identify and resolve billing errors through a monthly bill validation service.

The Results

Savings achieved from Chapter 1 mobilisation under the SAHA group contract:

  • Gas annualised savings of £71,144 (50.8% vs. previous prices).
  • NHH annualised savings of £24,373 (19.8% vs. previous prices).

The settlement of 24 month fixed gas and power contracts over the complete portfolio equates to £95,517 savings annually (current vs. previous costs).

Other benefits realised:

  • Zero financial penalties for early termination of energy supply contracts.
  • Significantly lower energy consultancy fees.
  • Complimentary AMR rollout for 01-04 NHH and gas meters.
  • Complimentary bill validation, with monthly costs and consumption reporting and issue resolution.

Testimonial

“Having worked with Beond for 18 months now, we are very happy with their support and assistance in obtaining value for money when procuring our energy contracts.

The level of savings recently made by Beond has gone a long way in ensuring that our residents enjoy lower energy bills via their service charges, which is one of our aims in helping to reduce fuel poverty.”

Dean Sitton, Capital Projects Manager

For further information about any of our services please call Beond on 0208 899 7385 or email info@beondgroup.com

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