Direct Global helped Advanced Innergy Solutions (AIS) reduce energy costs and improve operational efficiency by combining flexible energy procurement, contract optimisation and capacity reductions. This tailored approach delivered immediate commercial savings, improved energy purchasing and laid the foundations for ongoing efficiencies and cost savings.
Like many UK Businesses, AIS were navigating an exceptionally volatile wholesale energy market. With prices remaining elevated following the energy crisis, securing a long-term fixed contract at that point would have exposed the business to locking in historically high costs.
Alongside market uncertainty, a review of the client's existing supply agreement identified commercial terms that did not align with their operational strategy. Their portfolio was distributed across several different contracts on different contract terms.
In addition, whilst the business had had a large power demand, their agreed capacity with the network was much higher than their requirements. This result in unnecessarily higher network charges being applied.
To help AIS navigate a volatile energy market, we implemented a flexible energy procurement strategy that avoided fixing prices during peak wholesale costs. By purchasing energy as the market recovered, we reduced procurement costs while actively managing risk.
Working closely with AIS, we initially carried out a full tender process to align the portfolio into a flexible agreement, allowing us to purchase energy at opportune times to supports the company's long-term purchasing objectives.
We initially carried out a Risk Workshop and create a bespoke long term trading strategy. We placed upper price monitors at key price levels to manage risk and price targets to give ourselves the best opportunity to hit market lows. We monitor our performance and decision making using live position reporting, regular energy market reviews and communication.
On day one we carried out a full capacity review for all sites, analysing historic power demand against their capacity agreed with the network, to identify any potential savings.
By combing their portfolio and implementing a flexible procurement strategy, AIS began seeing savings immediately, with reduced energy costs, enabling the business to benefit as wholesale costs fell and delivering significant procurement savings. We successfully managed to achieve savings of 20-30% against the energy market for both gas and power contracts.
Alongside the commercial benefits, Direct Global’s support vastly improved AIS’s knowledge of the energy market, allowing them the navigate market complexities and risks with peace of mind.
On day one, we managed to process a capacity reduction with an annual saving of £25,000 as well as identifying an additional £50,000 in annual savings.
Direct Global continues to support Advanced Innergy Solutions with ongoing market guidance, position monitoring and strategic advice, ensuring the business has the tools and expertise to optimise its energy purchasing year after year.
