Escalating energy costs have become a major headache for Irish companies of all sizes. Over 60% of electricity is generated by natural gas sourced from the U.K. and the weakening Euro has elevating the cost of electricity production in Ireland over the recent years. The rising cost of capital has also forced increased transmission and distribution costs on the market (expect another 7% increase in October). In a market place where inflation is running at an all time low, such a rise in a non-core cost eats directly in to bottom line profitability.
How can Finance teams combat this rising cost?
By actively managing both energy unit cost and consumption, organisations place themselves in the best possible position to minimise this cost factor.
Sounds easy? Maybe not.
Within Irish organisations today, in-house resources for managing non-core costs have become increasingly stretched. To become familiar with the market players and the industry terminology used is time-consuming and ultimately distracts from essential core activities. Deciphering “DUOS” charges, “TUOS” charges, “SEMO” charges, Capacity charges, Multi-tariff rates, etc. etc. is a minefield and requires expertise not normally found in finance departments. Comparing rates from competing suppliers has become increasingly complicated and selecting the “best deal” requires in-depth analysis.
So what is the solution?
By outsourcing the management of energy cost, the following benefits will arise.
- Ensures lowest possible cost for energy purchase
- Ensures strategic management of energy consumption
- Releases in-house resources to concentrate on core activities
- Allows peace of mind, in the knowledge that this cost is being actively managed by experts
Sounds great, but what is the cost?
Auditel can provide this service on a contingency basis with no direct cost to the client. Payment is made through shared savings with no upfront fees. We can take over management of your energy costs today and your organisations bottom line can improve immediately. If there are no savings, then there is no cost. So the question instead of being “Why?” becomes “Why not?”