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  • Inenco has 25TW (£2.4bn) energy under management, which could power the whole of Ireland for an entire year!
  • Our customers are paying 48% less than the market price for their gas commodity. That's a saving of £480k per £1m that would have been spent
  • Our experts process over 93,000 invoices per month and we've recovered over £11m in over-charges for our clients in the last year
  • Inenco look after 8,000 customers across the group, managing 140,000+ meter sites
  • We provide support to over 500 businesses for energy and carbon management
  • Our solutions team have identified savings of £37.5m per annum for our clients, a total of 495,338,992 kWh savings identified
  • Last year we saved our CCA clients alone £25.5m

Your appetite for energy risk management

We work with over 50 food and drink manufacturers to provide an end-to-end utility solution. The time and resource allocated to staying abreast of new schemes, policy and legislation is increasing and the experts at Inenco can support you in achieving your budget, meeting compliance targets and offering insight and advice on sound investments with a quick payback. As experts in utilities, we save business’ money without costing them the time and resource.

With the market constantly moving, does your energy strategy still fit your purchasing requirements?

Since 2005, the cost of energy has risen by 70% and yet most organisations in the UK take no action when it comes to their utilities renewal.

The UK is faced with a changing landscape and businesses are now less in control of their utilities costs. As one of the most energy intensive sub-sectors, food and drink manufacturers should be working closely with their energy consultancy as setting and managing energy budgets accurately will be vital in protecting your expenditure.

How is the cost of energy rising?

With a changing market environment, it’s critical for any business energy buyer to assess your exposure, review your energy budgets and consider your approach to energy risk management.

Wholesale energy prices have the potential to be incredibly volatile. A good decision one day might turn out to be a mistake the next and by 2020, third party charges (non-commodity costs) could account for around 60% of your electricity bill, overtaking the cost of wholesale energy.

With non-commodity costs continuing to increase year-on-year and recent announcements such as the Capacity Market and the cost of Hinkley Point C heightening, there are concerns that the costs incurred by businesses will worsen their ability to remain competitive.

With an uncertain and likely volatile future for energy prices, getting an energy strategy that suits your food and drink manufacturing organisation will prove key over the coming years. So, how can we help you?

Is your business meeting all obligations?

By choosing Inenco as your utility partner, you have at your disposal a vast array of expertise all under one roof.

Whether you are looking to organise your utility strategy across all elements, or if you have complex legislative obligations and KPIs around sustainability, Inenco has the utility services your organisation requires. Our service is designed to enable you to derive the maximum benefit from the complex world of energy management and help your in-house team stay abreast of upcoming compliance schemes.

Complying with mandatory schemes is too important to leave to chance and our dedicated compliance team are true experts in their field. We understand the intricacies and differences in reporting requirements for a full range of compulsory and optional energy and environmental schemes such as greenhouse gas (GHG) reporting, climate change agreements (CCA), carbon disclosure project (CDP), combined heat and power quality assurance (CHPQA) and EU emissions trading system (EUETS).

Not forgetting the fast-approaching energy savings opportunity scheme (ESOS) deadline. Some organisations are considering ISO 50001 to comply with phase 2 in 2019 to implement a robust energy management system and make future ESOS compliance easier.

Inenco will ensure your business meets all obligations and work with you to identify extra savings and benefits to mitigate upcoming incremental costs. Our compliance experts can help you to gain the maximum value from available schemes within our holistic suite of utility-related compliance services.

Not only that, we will compile and maintain a body of evidence and submit it to the regulator when required.

Is your utility strategy fully optimised?

At Inenco we pride ourselves in being able to assist you not only with how to buy your energy smartly and compliantly, but also with how to maintain processes whilst reducing your energy consumption and identifying new opportunities through new technology, market opportunities or processes.

As one of the most energy intensive sub-sectors, food and drink manufacturers should be working closely with their energy consultancy as setting and managing energy budgets accurately will be crucial to keeping your expenditure under control.

With so many upcoming changes across the energy landscape, businesses need to be prepared. Next year will see the introduction of the Energy Intensive Industry (EII) exemption, which is great news for exempt businesses, but those that aren’t eligible will have to absorb the extra costs – which is expected to raise RO and FiT costs by around 6% for each business. Also, the Climate Change Levy (CCL) tax is due to increase by 46% when the Carbon Reduction Commitment (CRC) is abolished in 2019.  How can you prepare for these cost increases?

Over the next 3 years, non-commodity costs are expected to rise as follows for the food & drink sector:

2017/18 – £90 million

2018/19 – £101 million

2019/20 – £106 million

We will help you to identify and maximise the opportunities that are available and which are best suited to your organisation. Implementing a few simple techniques can reduce energy consumption, as well as enhancing your environmental and sustainability credentials.

Recover your Missing Millions

It is estimated that the food and drink sector spends more than £123 million a year on energy alone.

Inenco’s Missing Millions report, released earlier this year, exposed that one in five business energy bills contain mistakes and highlighted that 2% of energy spend is billed incorrectly.

Amongst the worst hit was the manufacturing who could be missing out on over £65million of unclaimed refunds and incorrect energy charges with £17million of this coming directly from the food and drink sector.

At a time when energy costs are rising by 25% and businesses are facing pressures from every direction, recovering historic inaccuracies and preventing future over-payment could make a big impact on the bottom line.

The only way to identify these issues is by conducting invoice validation and bill audits to check for inaccuracies across the supply chain, yet only 20% of organisations currently conduct these on a regular basis. Businesses can recover incorrect charges for the past 6 years and the entire process can be managed end-to-end to make it simple and stress-free.

We have saved one of Britain’s largest food manufacturers over £530k through our Bureau service.

When was the last time you reviewed your energy strategy?

Inenco are offering a consultation to review your current strategy and the products available in the market. To schedule your appointment with one of our specialists, click here.

Our Expertise

Inenco has worked in the manufacturing sector for almost 50 years, helping numerous organisations understand their energy usage and improve their energy efficiency. We understand the various challenges faced by the sector and appreciate that energy takes up a significant portion of a business’ running costs, so it’s priority to review your strategy.

Inenco’s dedicated team are sector specialist’s and understand the pressing challenges facing food and drink manufacturers across the UK.

Inenco’s energy traders procure over £1.3 billion of power and gas each year on behalf of over 800 organisations, making us one of the largest third party purchasers of energy in the UK. Our experts place thousands of contracts every year and our award-winning energy buying team have a proven track record of outperforming the market on behalf of our clients.

We have access to a range of market intelligence sources, from commodity markets to long range weather forecasting, to give a complete view of market influences and inform our purchasing decisions. Our long-standing relationships with suppliers allow us to negotiate better terms on your behalf and provide an unbiased recommendation to you based upon our understanding of your requirements.

Request a call back

To request a call back with one of our energy experts,
please complete the enquiry form below.

Or call us on 08451 463626 today!

 

Case study – Chocolate manufacturer and retailer

Strategy

The client wanted to ensure that their site with an exisiting Climate Change Agreement (CCA) was completely compliant, as well as ensuring their commitment to the Carbon Reduction Commitment Energy Efficiency Scheme (CRC). Inenco were contracted  with the original application back in 2003 and have continued to guide the company through the scheme and assist in achieving targets, helping them to keep their energy budget in good shape.

Inenco advised what could be done to improve the accuracy of CCA compliance and CRC reporting before advising the options available to the client. The Inenco team provided detailed data collection tools and guidance for collecting hard-to-access data such as F-gases, to ensure that no relevant emissions sources were overlooked. Inenco provided the client with a fully referenced and evidenced Directors’ Report summary to insert into its annual report

The Results

Inenco guided the company through the end-to-end compliance process quickly and easily, managing data, reporting, completion, and submission. As a result, the client achieved £115k in CCA savings and £217k in CRC savings in 2016 alone.

To date, Inenco have mitigated £1.5m in CCA and CRC charges for the client and by having an agreement in place, the company’s annual savings are forecast to increase in future periods due to increases in both CCA charges and relief rates.

Case study – Snack food manufacturer 

Strategy

As part of its Pan European Procurement objectives, the client engaged Inenco to conduct a desk top strategy exercise to review its current group and individual energy procurement practices and to recommend alternative risk management and trading strategy solutions.

Having assessed the company’s trading strategy, its potential appetite for risk and key objectives, Inenco recommended using a flexible procurement method where possible. Inenco’s uniquely tailored risk management and trading strategy better optimised the client’s costs and derived additional value in alignment with their core objectives to reduce energy costs and shrink its environmental footprint.

Results

As a result of Inenco’s alternative recommendations for risk management and trading strategy solution, the client saved over £1.5m on their group energy procurement contract.

 
 

Case study – Confectionery manufacturer  

Strategy              

The client required budget certainty, lowest price, the ability to forecast long term but also to take advantage of fluctuating market prices with a fixed commodity for 12 months. This meant protection and flexibility to re-forecast volumes during the contracted agreement.

Inenco took the time to understand the business’ requirements and built an energy strategy in line with global requirements to work towards. Inenco recommended a low-risk procurement strategy so that the client could stay in control of budgets and were able take advantage of fluctuating market conditions

A long term buying strategy as part of an aggregated buying strategy with the flexibility to change made considerable improvements to the client’s bottom line. Pro-active Account Management when the market was offering best value meant that the client could take advantage of the lowest commodity prices for 8 years. Inenco also provided Virtual Caps, so the client was able to provide budgets until September 2020.

Results

Inenco were proactive with procurement management, despite non commodity charges increasing considerably. Long term reductions were secured reducing costs significantly. As a result, the client achieved a net saving of £62k and over £145k total commodity savings on their most recent procurement deal.