EIC NewsEIC, the UK's market leader in energy consultancy, has worked closely with Formica to manage one of its largest overheads - energy.
Formica joined an EIC Portfolio for both electricity and gas in 2007. The premise of the Portfolio is that it combines a group of energy users to enable them to qualify for a fully flexible contract, which is then professionally risk managed by the team of experts at EIC.
Formica joined a three year electricity Portfolio from January 2007. They immediately saved ?35,000 due to the economies of scale that come into play when combining the individual load profiles of each Portfolio member. Load profiles rate how consistently energy is used throughout the day. With EIC simply merging the load shapes, a smoother load profile for the Portfolio as a whole is achieved, creating benefits for all members.
During the first year of the Portfolio, EIC was able to take advantage of a falling market through active risk management, saving Formica ?264,000 against what a fixed contract would have cost. A further ?50,000 saving was made for the remaining two years of the contract. EIC has protected the Portfolio against more recent price increases and has positioned members to benefit from any subsequent market falls.
The sound management of the electricity Portfolio inspired Formica to join an EIC gas portfolio for three years from June 2007. Formica's gas cost over the Portfolio term is over ?1 million below current market prices.
Alastair Harris, Head of Risk Management at EIC commented, "We are delighted to have been able to deliver such positive results for Formica and our other clients through our risk managed Portfolio service. The market has been challenging as always but our
focus is always first and foremost to protect our clients' budgets. To be able to deliver such significant cost savings to our clients is our ultimate goal."
Richard Pollington added, "I cannot over emphasise how much the EIC Portfolio has helped with our budgeting process, providing us with excellent visibility of future prices. EIC are now also helping us to identify opportunities to bring this form of energy
contract management into our European operations."
In addition to energy procurement, Formica has also commissioned EIC to look at the demand side of its operations, and EIC is currently working on Carbon Reduction and Climate Change issues.
For further information, please call Ray Attridge at EIC on 01638 751 400.