By Ralf Albus, Regional Finance Director
We have successfully worked with Carbon Credentials for a number of years on compliance with the Government’s CRC Energy Efficiency Scheme, and also in securing utility consumption and carbon reductions across our London hotels. It seemed logical, therefore, for us to challenge Carbon Credentials to tender our electricity and natural gas supply contracts for us, prior to our existing supply contracts coming up to their expiry dates in early October 2015.
For us the key considerations were:
- To secure the best competitive fixed price deal for the company in new supply contracts for both electricity and natural gas.
- To deliver a procurement service to us that was transparent at every stage – this was so that there would be no surprises when the final contract award recommendations were made.
- To provide a genuinely independent and unbiased service to us where our procurement consultant was not linked to any individual supplier.
In response to the enquiry from Morgans Hotel Group, Carbon Credentials:
- Submitted at detailed implementation plan for approval setting out the proposed procurement strategy (a phased approach with Carbon Credentials reporting to the client at the end of each of 4 project phases), as well as project timelines for each of the procurement phases.
- Prepared the tender enquiry pack for both natural gas and electricity supply, completed historic supply cost analysis (to de ne savings), completed existing supply contract termination notices on behalf of the client, and recommended the supplier tender lists.
- Conducted 3 successive tender enquiry rounds (including the nal contract award round) with client reports on both costs and commercial terms at each phase.
- Worked closely with the client on the separate contract award days for both natural gas supply and electricity supply.
The resulting outcome was a new supply contract for both electricity and natural gas supply, provided to Morgans Hotel Group:
- New fixed price natural gas and electricity supply contracts from a leading UK energy supplier.
- Cost savings of an estimated £144k pa (15% for electricity and 19% for natural gas), when compared to the cost benchmark period of April 2014 to March 2015.