Power Direct works with manufacturers of all shapes and sizes to help control their energy costs. Regardless of whether you have a low consumption set-up, or are multimillion kWh consumers, we’ll help put in place energy contracts that are fit for purpose.
First and foremost we focus on risk, and the exposure a client is willing to accept when procuring their energy needs – which in turn influences the products and suppliers we recommend. We’ll also ensure you’re up-to-speed on other key considerations, such as where you stand in relation to the Climate Change Levy, whether you can apply for reduced rates through the Climate Change Agreement (CCA), and if you need to comply with regulatory requirements such as ESOS.
All of which requires an accurate understanding of your business. That’s why for all our clients we start an engagement by gathering all the information we can about the relevant sites, including location, meter types, consumption profiles, and what most of the energy is used for.
This is where risk then enters the picture. For those clients looking for a lower level of risk in terms of their energy buying strategy, we’re most likely to recommend a basic fixed-term contract where all the costs are set for the duration of the contract. Indeed, we can even help them join a collective buying group to further reduce the price they’re paying.
Then there are those energy intensive users who prefer to buy their energy more flexibly, and to actively control the amount being purchased and when it’s available. Such packages come with increased risk, which is why we’ll help ensure you have the right processes in place to manage the activity. We’ll also give you full transparency on non-commodity and supplier admin costs – as well as the opportunity to take advantage of movements in the market to get the best deal.
Our main services for manufacturers include:
- Energy procurement
- Review of supply capacity
- Consumption monitoring
- Invoice validation
- Consumption reduction initiatives
- Basket buying
Power Direct in action
Working with a world leader in the manufacture of composite materials for the aerospace, defence, rail, marine, and medical markets – and a large consumer of both gas and electricity.
What do we do here? Well, it’s fair to say the services we provide go way beyond the ‘basics’ of placing supply contracts. As with many of our clients, we’re also solving administrative issues concerning billing and contractual issues.
Billing was, initially, a big concern. That was because the supplier had for almost a year not issued any invoices, which in turn was causing major headaches for the budgeting and finance teams. The Power Direct team quickly got involved, as we pushed the supplier for accurate and correct billing to be put in place. We soon resolved the problem and ensured that our client saved hours of work chasing the supplier. As a result, we’re now tasked with undertaking regular monthly invoice validation activities to prevent future issues arising.
Another problem we helped resolve were contracting issues caused by changes to the machinery in use, and the resulting drop in gas consumption. After reviewing contract terms and assessing the likely effect on the client’s overall consumption profile, we were able to negate the possibility of ‘take or pay’ penalties when negotiating renewals.