Case Study

E-ACT: Introducing a flexible procurement strategy to control rising energy costs.

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E-ACT: Introducing a flexible procurement strategy to control rising energy costs.

E-ACT is a Multi-Academy Trust supporting 28 academies through four regional clusters in London and Buckinghamshire; the Midlands, the North; and the South West.

Case study highlights

A flexible procurement strategy was proposed in order to allow E-ACT to benefit from fluctuations in the wholesale energy markets.

19% cost saving due to a flexible procurement strategy

The challenge

E-ACT’s three-year fixed gas supply contract was coming to an end and it was facing a 30% increase in gas costs across its estate, with wholesale gas costs at a ten-year high. It sought a procurement strategy that would minimise the impact of rising energy costs.

The solution

Zenergi facilitated a workshop with E-ACT to understand its budgeting needs and purchasing objectives. A flexible procurement strategy was proposed in order to allow E-ACT to benefit from fluctuations in the wholesale energy markets.

The low risk strategy enabled E-ACT to access wholesale markets and to forward purchase gas to provide budget certainty, whilst also purchasing on the month-ahead and day-ahead markets for the 53 gas meters of its 28 academies

The results

The flexible procurement strategy delivered a 19% saving when compared to a traditional 12-month fixed contract. Invoice validation services ensure that E-ACT’s energy bills are checked for accuracy ahead of payment, with any errors managed by experienced energy consultants through to resolution.

Account management means that additional academies are seamlessly integrated into the group energy contracts for this fast-growing Multi Academy Trust. Energy Certificates (DECs) and Recommendation Reports ensuring that the Trust is compliant with regulations.

 

For a large trust like ours, movements in the energy market can have a substantial impact on our bottom line if we sign a contract at the wrong time. Zenergi’s energy trading expertise and support gave us the confidence to adopt a completely new approach to our energy procurement, which has enabled us to benefit from the volatile nature of the energy market.

Dominic Peverell MCIPS

Procurement Manager

E-ACT

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19% cost saving due to a flexible procurement strategy

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