Sharp Increase in Energy Efficiency Saves Company £200,000 in First Year

Sharp Interpack is the UK's largest producer of thermoformed plastic trays for packaging applications. After recently embarking on an energy efficiency initiative the company is on course to save over £200,000 in the first year alone.

The secret of their success? A true commitment by the entire organisation to reduce energy consumption and costs, by improving efficiency and procurement practices, backed by independent expert advice from a leading North West energy management consultancy.

"Prior to the initiative, higher energy prices over the last two years had increased our annual production costs by over £500,000," explains Sharp Interpack's Operations Manager. "Suddenly energy efficiency became a high priority, particularly after one of our customers told us about the substantial savings they had achieved as a result of working with Utility Masters."

Within two days of a site survey by Utility Masters' engineer, energy committees were established to enable all personnel who had the ability to influence energy use to discuss project implementation. Armed with a detailed Energy Efficiency Plan, the company started to see the results of their efforts almost immediately.

Project management was headed up by Utility Masters consultants who helped to prioritise initiatives. Site consumption data was analysed in detail, allowing the effectiveness of new shutdown policies and production schedules to be reviewed. Flexible sub-metering of specific manufacturing processes identified further opportunities to make savings.

It is often the case that the cumulative effect of small changes can have a substantial effect on efficiency. Staff awareness campaigns, the elimination of compressed air leakages, a review of the use of electric process heating, scheduling of equipment usage and improved insulation are all contributing to bottom line savings. As a result, Sharp Interpack is on course to achieve a 20% reduction in its £2m energy bill over the next 18 months.

In addition to energy saving initiatives, the Utility Masters team conducted a detailed analysis of consumption data, bringing to light errors in billing data which resulted in a direct reimbursement of energy costs to the client.

To reduce energy costs, Utility Masters now manage a Flexible Purchasing contract which has allowed Sharp Interpack to benefit from lower wholesale prices as and when they become available. Access to a wealth of expertise and relevant information has provided the company with the tools to improve their energy purchasing performance.

"The changes initiated and managed by Utility Masters have had a dramatic and immediate effect on our bottom line," says Sharp Interpack's Financial Director. "There is still work to be done but we are already passing the benefits of increased efficiency onto our customers in the form of a more competitive service."

To find out how other companies across all market sectors have dramatically reduced their energy spend by working with this North West-based consultancy, please contact us or call Phill Connell on 0161 785 0404.

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Flexible Energy Purchasing

The Issue
Grampian Country Food Group, a leading UK food company, wanted to maximise the savings it made on energy purchasing. Traditionally the Group had purchased gas and electricity on one-year fixed price contracts, but energy prices had risen sharply, meaning that this approach would have resulted in a 45% increase in energy costs for the Group.

Our Solution
Utility Masters suggested that Flexible Purchasing may offer Grampian Country Food Group a solution. We interviewed a number of suppliers and selected one based on the flexibility of their contract, coupled with a known track record of good customer service to Grampian and other Utility Masters customers. This customer chose to use Flexible Purchasing, buying a proportion of their energy requirement flexibly and taking take advantage of lower energy prices.

Flexible Purchasing gives large energy users the opportunity to buy energy from the wholesale markets, taking advantage of movements in the market. Grampian Country Food Group buys energy in monthly or quarterly blocks, taking advantage of dips in wholesale energy prices.

Utility Masters provides expert knowledge and information to support the customer's purchasing decisions. We send out a daily report by email, showing energy price positions and changes at the close of markets.

By comparing the customer's actual paid rates to those available at the time of their main contract renewal, Utility Masters can demonstrate real savings achieved. We also track purchases, to evaluate whether purchasing decisions have been made at the most appropriate times.

Benefits
By purchasing a proportion of their energy in this way, our customer is saving money. Overall, the year-on-year increase in energy prices has been kept to 30%, a 15% saving over fully fixed prices. Utility Masters have improved the customer's overall energy cost management by providing added value information and decision support throughout the time we have managed their Flexible Purchasing.

The Future
Grampian Country Food Group have extended their Flexible Purchasing contract to cover the year 2005/06, also adding the option of day-ahead purchasing, increasing their flexibility, to take advantage of even shorter-term reductions in energy prices.

To learn more about Flexible Purchasing and how it can benefit your business, contact us.

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