Case study 2 February 2020

National hotel operator: 22% saving on gas and electricity

  • SOLUTION Procurement and risk management
  • SAVINGS 22% saving on gas and electricity

The challenge

Faced with an annual utility spend of over £40m, and the backdrop of commodity and non-commodity charges forecast to increase over coming years, a major UK hotel operator wanted support in tendering their gas and power supply contracts.

The company, that we have worked with since 2006, needed an energy partner that would not only drive the keenest price possible, but also ensure a robust contract framework that would deliver against a broader set of business objectives including value added services and service levels.

The solution

Having completed a thorough data collection and site validation process, we then mapped out the client’s specific requirements so that we could instruct the bidding energy suppliers appropriately.

After the tender had been issued to a wide range of suppliers, the responses were received and analysed by Mitie Energy. Once ‘best and final’ offers had been reviewed, the analysis was presented to the client and a subsequent supplier shortlisting and meetings took place, facilitated by us.

Following the appointment of the successful supplier, we then conducted a commercial review of the contract paperwork and produced Post-Tender Reports.

We then worked with the client to create an energy risk management strategy, in line with the client’s risk appetite and business objectives.

The outcome

Our support not only delivered a 22% saving for our client’s gas and electricity, but our risk management strategy also improved the way they purchased energy on the wholesale market.

In addition, the provision of Renewable Energy Guarantee of Origin (REGO) backed supply – an assurance that their supplier would provide energy produced by renewable sources – at a competitive price also complemented the client’s wider sustainability targets of reducing their CO2 emissions by 15% by 2020.

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