Sizable Refund, Savings for Chemicals Manufacturer

Saved 435.000,00ย โฌ / 135.000,00ย โฌ Refunded
NUS reduced annual costs and improved the risk exposure for a large chemicals manufacturing company.
Chemical company saves โฌ435,000 on commodity costs and benefits from a โฌ135,000 energy tax refund in Italy.
A major multinational chemical manufacturing company engaged NUS Consulting Group to help manage its energy price risk exposure in Italy. After many years of employing a fixed price contracts strategy, the Client, with NUSโs support, decided it was the appropriate time to transition to a risk managed portfolio purchasing approach to their energy (electricity and natural gas) requirement.
The NUS project team undertook a review of the clientโs energy procurement objectives, constraints, procurement governance structure, and performed a series of interviews with key energy stakeholders at the clientโs sites. The outcome was the drafting of Strategic Energy Risk Management Plan (SERMP) document incorporating all of concepts and requirements identified in the pre-planning stage. With the strategy in place, NUSโs Market, Trading & Risk team commenced monitoring market developments and implement the planned set of program initiatives โ i.e., trading triggers and hedge coverage requirements. Over a period of two years, the active portfolio management strategy resulted in the Client realizing savings of โฌ435.000 across its commodities portfolio.
In addition, NUS, through its knowledge of local Italian energy regulation and legislation, identified a refund opportunity on paid electricity taxes totaling โฌ130.000. NUS supported the Client undertaking the complex process to claim these taxes both from technical and legal point of view.
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