Commercial

LGE was appointed to manage the entire utility procurement and invoice management process across a large complex portfolio that included commercial property, retail, airports and ports.

The client had run a particular strategy for ten years which was reviewed and analysed, after which recommendations for a change in strategy were made. The proposed changes were designed to ensure that the client benefited from dynamic changes in the market, via advanced risk management techniques.

Results:

At the pre-contract stage, LGE were able to negotiate preferential terms and conditions with suppliers, which yielded savings in excess of £150,000 per annum. A portfolio structure was created at group level, with each business unit treated as a separate entity. This allowed a “shaping benefit” by optimising demand profiles to reduce residual costs by £300,000 per annum. The client also benefitted from LGE’s trading strategy, aided by LGE’s market leading intelligence division Energy Trader Daily. Savings achieved through the trading activities were standing in excess of £500,000 in the first two quarters of trading.