Established in 2012, Essential Living Management Limited is a London-based property developer offering modern fully furnished apartments that prioritise the needs and comfort of over 2000 renters.
The stepping stone of the long lasting customer relationship established with Essential Living started with the temporary building supply (TBS) which was installed in 2016. Since then, the relationship has grown significantly with all five (5) sites having a fixed energy procurement plan managed by Pulse.
Adopting a flexible energy procurement strategy
In light of the unprecedented energy market volatility in 2022, Essential Living approached Pulse to see if a more effective energy procurement plan could be found approximately five months in advance before the gas contract was up for renewal. As the energy costs are being recharged to tenants in each building, finding the best possible rate was paramount to keep customers satisfied with the level of service offered.
The Solution
After careful consideration and assessment of their specific needs, At Pulse we have been able to put forward a a day-ahead (described as a financial market where participants purchase and sell electric energy at financially binding day-ahead prices for the following day) energy purchasing approach. The decision was based on energy markets being at a record high at the time and the anticipated consumption value.
With a forecasted annual cost of approx. £400k, by using this sole approach meant that we have been able to save Essential Living approx. £50k. This would’ve been impossible on a fixed-term contract.
While the electricity supply continued to be on a fixed tariff, the gas supply was moved to a stand-alone flexible contract with Regent Gas from 23rd September 2022 with a 1st October start date.
The bespoke customer service support is very important at Pulse and with Essential Living that is no exception. We have a fortnightly purchasing strategy meeting where the energy market status is being reviewed, address possible ongoing issues with suppliers and ensure these are tackled in advance.
Matthew Callaghan, Finance Operations Manager at Essential Living said:
Having worked with Pulse for a number of years, we can certainly say that their expertise and pro-active approach sets them apart in the business energy market. Their continuous support and dedication have been instrumental when we looked for a more suitable procurement plan in line with our needs to tackle the unprecedented energy market volatility that reached a peak in 2022. Pulse helped us to identify a flexible procurement plan that allows us to take a long-term view of the energy market, saving us over £400k for our 2023 costs since adopting this new procurement plan.
Some key facts:
Annual consumption – Power: 1.8 gWh. Gas: 4.8 gWh at approx. £400k
Savings – £50k
Supplier – Regent Gas
An effective energy procurement strategy optimally matches your business needs with the right business energy deal and we know this can take time to find. As energy is one of the biggest overheads for any business, securing the right price and the right terms for your gas and electricity can make a huge difference to the health of the balance sheet. We encourage businesses to research the best available energy purchasing option well in advance of your contract end-date coming to an end, as this will give you more opportunities to find the most suitable procurement plan.
