How one foil manufacturer put £4 million back into the business

The way energy is bought, managed and accounted for can have a significant impact on operating costs, and opportunities can easily be missed if the focus is only on securing the next contract. That’s what happened for one UK foil manufacturer.

They came to us needing a new energy partner after their previous consultant failed to secure their next contract. What started out as a fairly ordinary procurement exercise grew into something much bigger, an ongoing partnership that ended up uncovering millions of pounds in savings through trading decisions, network reviews and unclaimed exemptions.

£2.25m

Saved against average wholesale market rates

£704k

Saved over three years by reducing KVa capacity

£730k

Saved by securing and backdating their CCA and CCL relief

Securing energy contracts

To begin, procurement was the priority. They needed to get their energy contracts back under control and regain confidence with a new energy partner.

Our energy traders put a flexible procurement strategy in place, giving the manufacturer more control over how and when they bought energy.

But securing the contracts was only the start. With a flexible strategy in place, the way those contracts were managed would become just as important as securing them in the first place.

Responding to a volatile market

Through 2021 and 2022, wholesale energy markets were incredibly volatile – something we’ve become increasingly used to in the years since.

Our procurement team kept a close eye on market movements throughout that period, making trading decisions on the manufacturer’s behalf. Those decisions helped shield the business from the worst of the volatility, saving more than £2.25 million compared with average wholesale market rates.

And the opportunities weren’t limited to procurement. An assessment of the electrical infrastructure found that the site’s agreed KVa capacity could be reduced, which brought ongoing network charges down and delivered savings of more than £700,000. A further review secured a £342,000 backdated rate correction from the previous supplier.

One of the real advantages of an ongoing energy partnership is that the opportunities don’t stop once the paperwork is signed.

Identifying missed relief

During a routine check, the client’s Account Manager noticed the business was part of a Climate Change Agreement but wasn’t actually receiving the Climate Change Levy relief it was entitled to.

That was concerning enough on its own, but with reporting deadlines approaching, there was a real risk of non-compliance and, potentially, carbon buyout obligations.

Our Energy Management team moved quickly, completed the required reporting, secured the missing relief and backdated the claim. This created a further £730,000 in savings and made sure the correct relief would keep being claimed going forward.

What this meant for the business

For this foil manufacturer, the value came from continuing to review how energy was bought, billed and managed. Market volatility was managed proactively, network charges were reduced, relief that had gone unclaimed for years was recovered, and a compliance risk was caught before it became a problem.

The foil manufacturer put roughly £4 million back into the business. It’s a powerful example of what can be uncovered when energy is looked at as a whole, rather than simply as a contract to renew.

Ready to look closer?

Getting the right contract matters, but it’s rarely the only opportunity out there. If you’d like to find out what might be hiding beyond your current procurement strategy, we’d be happy to help.

Learn more about our Energy Exposure Assessment.