BAS Energy saves Status Instruments £30,000 after energy contract renegotiation
Status Instruments is based in Tewkesbury, Gloucestershire, where it designs and manufactures products for the process industry. The company was founded in 1982 and was bought by its existing management team in 2006. In 2012, it moved to larger premises at Status Business Park. Lyn Evans is the firm’s finance director. She explained how BAS Energy played an instrumental role in aiding the transition to the new site.
Helping a business through a major change
“They enabled us to sort out the issues with our existing energy provider and re-tender with another that better suited our needs. A new business electricity contract was arranged, as well as a new business gas deal.”
“After BAS Energy renegotiated the energy contract last year, it saved the company £30,000.”
“Their expertise in managing energy contracts enabled us to enter into a new arrangement that gave us access to the wholesale market, which resulted in significant savings.”
Ordinarily, utility bills involve a standard daily charge and unit rate, with all of the gas purchased upfront. Under Status Instruments’s new contract, the gas is traded throughout the month, in line with market price fluctuations.
This type of contract enables BAS Energy to be more responsive and consequently save its clients money. A traditional energy contract would have cost Status Instruments’s £130,000 more, as the gas price decreased throughout the year.
What other assistance did BAS Energy provide?
“In 2012, we were looking for a new energy contract. We needed to secure the best rates possible for the new park,” Lyn explained. “There was a new production building occupying two units and another two units with one tenanted out.”
At the time, they had to manage contracts relating to two sites concurrently – and halfway through the move, the old contracts were ending.
“BAS Energy helped us with the move from old to new premises, providing assistance with the timings of energy meter readings. The old contracts were changed to new ones with better rates, which was done superbly.”
According to Lyn, BAS Energy did a “magnificent job”.
Allowing firms to focus on the essentials
Aside from the cost savings secured through the renegotiated contracts, Status also saved time and resources.
“We had previously used different companies for our energy contracts but it proved to be very time-consuming. I would have to try to sort out which company to go to and everything else associated with the process.”
When the current team took over the company in 2006 through a management buyout, they had to take over the expenses side of the business.
“In 2012, we bought our own premises and a lot of other paperwork had to be done.”
“BAS Energy saved a lot of time, and this enabled us to save money through the business,” Lyn explained. “When new business energy contracts need to be sorted, BAS Energy reminds the customer, rather than the customer having to remember. It’s an invaluable service.”
The fact that BAS Energy was able to secure such significant savings without hassle and stress for the customer encouraged the firm to come back year after year.
A better deal for a small business
The importance of the assistance provided by BAS Energy becomes apparent when taking into account the nature of Status Instruments’ operations.
Status is classed as an SME (small and medium-sized enterprise), with only 25 employees. The company is divided into two sections: a manufacturing and production unit, and a research and development and testing facility, which occupies another building and is also home to all administrative departments.
As well as being a small business, Status is also very energy-intensive – the design and manufacture of thermostatic instrumentation consumes a great deal of electricity.
“BAS Energy was able to reduce our costs by securing the most energy efficient contract. Amalgamating gas and electricity into one place enabled them to negotiate a better deal for us,” Lyn remarked
BAS Energy prides itself on the aftercare it provides, and Status also benefited from this aspect of the service. “They sorted out a problem with the old contract and kept in touch to say when the old contracts needed to be re-done,” Lyn explained.