The document discusses the services provided by Expense Reduction Analysts' Utilities Team to help clients manage their utility costs. The team has over 200 years of combined experience in the gas and electricity industries. They monitor energy markets daily and have relationships with major suppliers to negotiate competitive contracts and prices for clients. The team can help clients with energy procurement, account management, billing, and dispute resolution. They provide portfolio management tools to help clients control costs across multiple sites.

1. Your Utilities Team
find extra profit
Expense Reduction
Analysts

2. 2 Your Utilities Team

3. Quick Reference
The Dynamics of the Utility Market 4 Energy Strategy for 10
Your Utilities Specialists 6 Today’s Volatile Market
Energy Market Considerations 8 Is Consultancy Right for You? 12
New Market Dynamics 9 The Service 14
What Happens Next? 16
Quick Reference 3

4. The Dynamics of the
Utility Market
“The dynamics of the Utility Markets present an ongoing
challenge to businesses and are often an unwanted
distraction from core activities. The Expense Reduction
Analysts Utilities Team can provide the time and expertise
to help you through these issues”
Experience Market Volatility
Our Utilities Team has a combined The dynamics of the Utility Markets present
experience of over 200 years working an ongoing challenge to businesses, and are
in the gas and electricity industries, often an unwanted distraction from core
for some of the leading suppliers and activities. Our Utilities Team can provide the
purchasers. This makes us the ideal time and expertise to help clients through
choice to help you with: these issues.
• Energy Procurement After privatisation, energy prices had been
• Account Management reducing as a result of the pressures brought
• Customer Service and Billing about by competition.
• Registration and Dispute Resolution
However, this downward trend has now
With daily monitoring of energy markets dramatically changed with energy prices
and an in-depth knowledge of the industry reaching unprecedented highs and
we are in an ideal position to rapidly and companies facing significant increases
efficiently deliver a viable cost-saving in utility costs as existing contracts come
solution to your business. up for renewal.
Expense Reduction Analysts can work with
you and your procurement team to handle
these changes and get back on top of your
utility costs once more.
4 The Dynamics of the Utility Market

5. Our Commitment
“To deliver a first class utility service
and ongoing business savings”
Supplier Relationships Portfolio Management
We have well established commercial and The Expense Reduction Analysts Portfolio
operational relationships with all major Management System offers excellent
suppliers and industry bodies. These reporting tools to help you keep control of
relationships enable us to ensure that we are your account. This system is also ideal for
always able to source the most competitive clients with multiple sites who may have
prices and receive advanced warning of any otherwise struggled to maintain consistent
upcoming market turbulence. overview of spend.
How will we Work Together? Working together we can implement this
We aim to develop long-term relationships service across your business and give your
with our clients by working together and internal teams the required training to
sharing our knowledge and expertise truly benefit from the in-depth reporting
with your teams for the entire duration and analysis.
of the project.
The Dynamics of the Utility Market 5

6. Your Utilities Specialists
The Expense Reduction Analysts Utilities Team
specialises in providing integrated utility solutions
for corporate, residential, retail, commercial and
industrial users of electricity and gas. We are able
to agree the best deals in a confusing marketplace
where energy prices fluctuate on a daily basis.
Our Utilities Team contains some of the most We constantly leverage this expertise and
knowledgeable energy specialists in the our strong working relationships with all
market with extensive experience of the major suppliers of electricity and gas to
energy industry working in both the supply ensure that we achieve significantly greater
and procurement markets. savings than would ordinarily be available
to businesses choosing to negotiate their
The majority of the team has spent many own contracts.
years working for energy suppliers at a
senior level and has been responsible for ne- However, we know that price is not the
gotiating some of the largest supply sole consideration when negotiating a
contracts in the UK. new utility contract and we therefore work
to secure you the best possible service levels
from your chosen supplier.
6 Your Utilities Specialists

7. “As a former MD of a utility company (backed-up by
years of procurement and operations experience) it is
clear to me that the energy industry has entered an era
of constant price fluctuations. Whilst it is still important
to ensure suppliers are not building excessive margins
into offers, it is far more important to focus on the
energy component of the costs which makes up
nearly 70% of the end price. Myself and all of the
Utilities Team will work on your behalf to continue
to find more savings wherever possible.”
Neil Middleton
Your Utilities Specialists 7

8. Energy Market
Considerations
There have been fundamental changes in the way
energy is now bought and sold. Below are a few
points that influence the prices you receive when
negotiating a new contract with your supplier.
• The most competitive contract rates are • Suppliers are now often unable or
seldom available just prior to contract unwilling to quote for new business in
renewal dates the traditional April and October contract
periods due to increased workloads and
• Monitoring the energy markets has their focus on retaining existing customers
become essential in order to formulate
a contracting strategy • Prices tend to increase as deadlines
for acceptance approach, with offers
• Fluctuations in energy prices now invariably being increased or withdrawn
influence contract rates for more than
supplier margins
8 Energy Market Considerations

9. New Market Dynamics
In simplistic terms, the cost of energy can be broken down
into two types of charges, controllable and pass-through:
The traditional way in which energy prices Whilst it is still important to ensure suppliers
have been negotiated has been to focus are not building in excessive margins into
on supplier margins in the weeks running their administration fees, controlling the cost
up to contract renewals. of the 70% wholesale energy costs through
better timing of renewals is far more critical.
However, due to the volatility in the
energy markets, this approach is no Our Utilities Team is aware of this and will
longer appropriate. We are now in a negotiate the best possible prices for your
climate where energy prices fluctuate new contract.
on an hourly basis.
New Market Dynamics 9

10. Energy Strategy for
Today’s Volatile Market
To stay ahead of the competition in today’s rapidly
changing energy market, it is essential to prepare
well in advance of contract renewal dates, and to be
ready to act as and when opportunities in the market
present themselves.
Suppliers are constantly updating their relationships with all major supply
products and services in line with the companies. This allows us to source
changing market. Keeping up with the best offers and services in the
developments is no longer practical market on behalf of our clients.
for the vast majority of customers.
In addition to procurement solutions,
This is where the Expense Reduction Analysts we are able to assist in all aspects of
Utilities Team can help. With a combined utilities, including Energy Audits,
industry experience of over 200 years, we Dispute Resolution, Bill Checking,
have an in-depth knowledge of utility Energy Efficiency Advice and
markets and enjoy excellent working New/Increased Supply Connections.
10 Energy Strategy for Today’s volatile market

11. Energy Strategy for Today’s Volatile Market 11

12. Is Consultancy
Right for you?
With constantly fluctuating energy prices the need
for efficient portfolio management is more important
than ever.
In recent years the energy market has been • Over the agreed term we can serve
exceptionally volatile and the trend seems notice of termination to your incumbent
set to continue. suppliers at the appropriate point in time.
This will avoid any penalty charges or
All energy users have experienced very roll-over contracts.
significant increases in the cost of gas
and electricity and therefore the need to • Once the portfolio is efficiently controlled,
efficiently manage your energy portfolio you will benefit from reduced workloads
is more important than ever before. in your accounts department.
Our Utilities Team can review your energy • The Utilities Team is constantly monitoring
portfolio to assess the best opportunities for the market to ensure we can inform you
cost-saving. This invariably involves ensuring of the best deals as soon as they become
all your energy contracts (if different available.
suppliers and/or contracts are in place at
different sites) are aligned as they reach
their renewal points. This process will ensure
a consistent contract is in place throughout
your company and all sites can be handled
together for future negotiations.
12 Is Consultancy Right for you?

13. • Pro-actively controlling your energy costs • We operate a transparent open book
is essential. We will work with you to approach to the presentation of our fees.
establish and complete a competitive
tender process for your energy supplies • We will fully manage the registration and
and all offers will be analysed on a implementation of your new contracts to
like-for-like basis. Further reductions ensure a hassle-free transition.
will then be negotiated and the findings
presented in a clear and concise report, • Our in-depth and constantly updated
enabling you to make an informed market information enables us to offer
decision of which supplier to choose. the best deals for your unique situation.
• Once agreed, you will receive 100% of
the savings generated from your new
contract. You will also benefit from any
further reductions throughout the life
of the agreement.
Is Consultancy Right for you? 13

14. The Service
Our service utilises market-leading expertise that checks
and validates billing formats, allowing efficient resolution
of any identified discrepancies
The average cost for a company to process We will consolidate and maintain
and pay an energy bill is £65 as estimated your key energy data and:
by the Office of Government Commerce.
By ensuring these bills are generated • Provide budgets at site or group level
correctly you can save (on average) the for accurate projections
equivalent of between 3% and 5% of your
energy costs. • Prepare your tender documents to achieve
competitive offers from potential suppliers
Portfolio Management
• Monitor the exchange of information
Successful utility management requires a between industry parties
comprehensive picture of your company’s
energy portfolio. Our system will keep you • Add and remove sites as your
up-to-date with accurate information, business evolves
helping you to make relevant, informed
and cost-effective decisions in the future.
14 The Service

15. Energy Buying Energy Billing & Customer Service
Controlling energy costs is key to managing Privatisation of the UK supply industry
your utilities. Working with the Expense initially meant price reductions; however
Reduction Analysts utilities team prior levels of customer service have suffered
to contract renewal can make international causing confusion, frustration and additional
market conditions work to your advantage. work for many customers. We will help to
Some examples of this include: ensure this doesn’t affect you by:
• Contract and risk options are complex; • Managing the registration and
we will help you choose the best deal for implementation of your new contract,
your business preventing possible start date delays
• We will fully manage the evaluation • Identifying and resolving any invoice
and co-ordination of supplier offers, errors on your behalf
negotiating tenders and presenting you
with an analysis of offers, ensuring an • Saving you time and potential frustration
informal decision can be made. by dealing with the various customer
service parties on your behalf
The Service 15

16. What Happens Next?
Managing your energy portfolio efficiently
Once you have agreed to proceed with the Utilities Team
and provided the relevant documentation, we will then:
1 Agree Energy
Proposal
9 Ongoing Customer 2 Gather and Compile
Service Management Your Energy Portfolio
8 Registration and 3 Portfolio
Implementation Report
7 Completed 4 Issue
Acceptance Tender
6 Present 5 Offer Analysis
Recommendation
Report
16 What Happens Next?

17. 1. Agree Energy Proposal 4. Issue Tender
We will prepare a report based on the We will produce and issue tenders to appropriate
initial information supplied in the Pre-Audit suppliers at a time agreed with you to ensure
Checklist. This report will provide our they have sufficient time to input and respond
recommendations on how you should to requests for prices.
proceed with the project.
5. Offer Analysis
2. Gather and Compile Your We will receive and analyse supplier offers
Energy Portfolio and ensure they are correctly evaluated and
We will collect information from you, negotiated to ensure you receive the most
MPAS/XOServe supplier(s) and other competitive rates.
industry bodies to complete a detailed
Energy Portfolio. This information includes 6. Present Recommendation Report
contract start and end dates, confirmation We will prepare and present a Recommendations
of current charges and annual usage. Report based on the offers negotiated with
suppliers. The report will contain a clear analysis
3. Portfolio Report of the offers received and an estimated annual
We will present a detailed Portfolio cost, together with the relevant documentation
Report which contains an accurate for the most beneficial offer.
assessment of current prices and our
assumptions. The information contained
in this report will form the basis of our
Tender Documentation. The report gives
you an opportunity to confirm all information
is an accurate reflection of your portfolio
before we proceed to the tender stage.
What Happens Next? 17

18. 7. Completed Acceptance 8. Registration and Implementation
You will be asked to sign the documentation We will pro-actively monitor all sites throughout
from your preferred supplier, and the the registration process with any objections or
completed documentation must be issues being addressed and resolved to ensure
returned to the successful supplier a smooth transition between suppliers.
within a pre-determined time period
(usually same day) for processing. 9. Ongoing Customer service
If you have any queries or problems, we are
Only after the supplier has received the available to assist throughout the entire
signed documentation and confirmed period of your energy supply contracts at
receipt does the contract become binding. no additional charge.
At this point, the supplier will have
purchased the necessary energy to
supply the contract and commenced
the registration process. Formal hard
copy contracts will follow in due course.
18 What Happens Next?

19. The Expense Reduction Analysts Utilities Team
achieves, on average, savings of 15% for its clients.
To find out how you can benefit from this service
contact your local specialist.
Your Utilities Team 19

20. find extra profit
Argentina Australia Austria Belgium Brazil Canada Chile Columbia Ecuador France
Germany Greece Hungary Jordan Italy Lebanon Luxembourg Mexico Morocco Netherlands
New Zealand Panama Portugal Spain Taiwan United Kingdom United States Uruguay
Expense Reduction
Analysts
www.erauk.net