Food & Agriculture company turns to NUS for better procurement strategy and non-commodity cost reduction
7 Jan 2021
With market expertise, NUS team identified and secured refunds of £62,600 and savings of £122,000 per year for the Food & Agriculture company.
The recent appointment of NUS by a major Food & Agriculture operator has resulted in not only a fundamental change in its energy procurement methodology, but also the realization of significant refunds & on-going savings through analysis & optimization.
The client has traditionally procured energy on fixed supply contracts view competitive tendering and acknowledged the inherent high risks and market exposure associated with this approach. After assessing the client’s risk tolerance and procurement objective, NUS created a detailed energy risk management strategy for the client, which balanced market opportunities and the client’s budget certainty requirement. The client is now enrolled in NUS’s flexible, risk managed energy portfolios – NUS Optimal and NUS Together – to let NUS’s market experts to make incremental purchasing decisions and managing market risks. NUS’s Markets, Trading & Risk team (MTR) is responsible for managing these two energy portfolios and strategic pan-European procurement projects.
NUS also undertook a comprehensive analysis of the client’s recent non-commodity costs after the initial onboarding process. The UK team reviewed various non-commodity costs, including transmission distribution, renewables obligations, capacity and tax. As a result, the team identified £62,600 refunds and £122,000 annual savings. The client is very satisfied with NUS’s services and has expanded its partnership with NUS to a comprehensive energy management and sustainability solution.
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