BAS Energy negotiate new energy deals for ARINC
ARINC provides passenger processing logistic solutions and communication services to the aviation and airports sector.
The company has regional headquarters in Crawley, West Sussex, which serve the Europe, Middle East and Africa (EMEA) region.
Paul Westwood is the senior procurement manager for the EMEA region. When Paul took on his current role, he inherited BAS Energy from the previous facilities staff.
When ARINC needed to expand, it encountered difficulties in managing the electricity contracts for the premises. It was then that Paul found BAS Energy’s expertise in negotiating new agreements to be invaluable.
Negotiating the best energy deal for the customer
ARINC is not an energy intensive business: its Crawley headquarters consists mainly of offices, and these do not consume a great deal of energy. Nevertheless, BAS Energy was able to help them make significant savings on their business energy bills.
“In 2011, we extended our footprint in the building,” Paul explained. “Originally, we had two floors, while the other two were occupied by another tenant. We took over the entire building, although one vacant floor was still being maintained by the landlord.”
The company had two main aims: it wanted to consolidate its multiple existing deals into a solution with services all terminating on the same date and reduce charges inherited from their landlord. BAS Energy helped them to achieve both of these goals.
“Landlords are entitled to charge a given percentage over and above ordinary energy charges,” Paul explained. “They are seemingly drawn to certain utility companies and are not incentivised to contract with the lowest-cost utility service provider, but need to demonstrate they’ve used a competitive tendering approach.” Generally, the higher the cost, the higher the service charge.
“That was the situation we inherited. BAS Energy was able to negotiate new energy deals, and ARINC made savings of up to 43 percent on some utility contracts, once deals arranged by the landlord had expired.”
The company had four different energy contracts and wanted to make them end at the same time. Paul’s account manager, Ken Albon, went out into the marketplace and found the best offers available.
“In some cases we signed two-year contracts; in one case, I signed one that lasted just five months,” Paul said. “The net result is that on July 31st this year, all of them will expire. Ken has been able to go out into the marketplace with a much bigger portfolio and secure even bigger savings than in 2011.”
In total, savings of around 11 percent in gas and electricity were realised over a new three-year contract, which commences in August this year. Furthermore, ARINC’s energy prices are fixed for the contract term.
BAS Energy’s expertise and ability to negotiate the best deals saved the company a considerable amount of time that would have been taken up making their own arrangements.
“There are many energy consultants who would have done the job,” Paul said. “But BAS Energy did it free of charge. Having looked at their benchmarked proposals, they gave us the best deal at the time and we were happy to sign the agreements.”
A good ongoing customer relationship
Paul was also very happy with the aftercare provided by BAS Energy following the negotiation of the new energy contracts.
He was particularly impressed by the clarity of the communication, as ARINC was kept fully apprised of all the relevant information through each stage of the agreement.
“During the processes over the last few weeks, Ken’s attention to detail has been very, very good,” Paul said. “The documents we have been signing have been accurately communicated – it’s been made clear what we’re signing and why we’re signing it.”
“Once we’ve signed the agreements, they go into customer support aftercare, when they are ratified by the energy companies. The entire process has been seamless.”
This has obvious benefits for the business, as it enables employees to focus on essential tasks. “The expectation is that I have no further need for their services in the short term. They’re not over-communicating to me, taking up my time.”
Paul has been highly impressed by his experiences with BAS Energy’s Corporate energy services. “I would wholeheartedly recommend them; I really would,” he said.