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Energy & Carbon
                                  m a n a g e m e n t




                                  The increasing cost and price volatility of
OUR GOAL
To optimise our clients’ short,
medium and long-term energy
                                  energy means that efficient procurement
and carbon costs through the
design and implementation         and use of energy is now a high priority in all
of cost-effective purchasing
strategies, volume reduction
programmes and full               organisations.
legislative compliance.



                                  Our long established expertise allows our
                                  clients to manage the risks involved in
                                  energy procurement and achieve meaningful
                                  reductions in energy consumption.


                                    Our Core Values
                                    In all our client relationships we are committed to being:
                                    •	Independent of all suppliers so that we can give genuine balanced advice
                                    •	Expert in the things that we do, so that our clients can rely upon the
                                      solutions that we propose
                                    •	Highly ethical and transparent in our dealings and transactions with
                                      suppliers and clients
                                    •	To underpin these values Energy & Carbon Management subscribes to the
                                      Association of Cost Management’s Code of Practice.
Who we are   Energy & Carbon Management is a leading independent UK
             consultancy specialising in the procurement and management of
             energy and carbon services. Our success is built on a 20-year track
             record of consistently delivering strong financial and environmental
             results for our clients. 


             Recognising the increased value that results from having specialist
             advice close at hand, we have organised our service delivery
             through a national network of locally-based client managers
             backed by a central team of technical and market experts. The
             effectiveness of this system is shown by the outstanding loyalty of
             our clients, allowing us to boast a 95% client retention rate.


             Our goals are clear: to secure the best purchasing terms for our
             clients, to reduce the volume of energy which is consumed, and to
             ensure they are compliant with all carbon legislation.




             Energy and water are economic
             necessities for all organisations.

             We aim to:
             •	 Secure the best energy purchase terms for our clients so they
                buy their supplies at the lowest possible price, respecting the
                client-specific energy strategies we have determined together
             •	 Reduce energy and water volumes through optimized
                management processes and where appropriate, advanced
                technical solutions
             •	 Ensure that invoicing received from suppliers is consistent with
                the contract negotiations and free of errors
             •	 Ensure clients comply now and in the future with government
                regulations, particularly those relating to carbon emissions
             •	 Remove the burden of complex compliance reporting,
                where required.
Procurement                               ENERGY
                                                                                               OUR SERVICES
              Management                              Management
                Services                               Services

                                         DATA
                                         HUB

                 Carbon                                 Water
               Management                             Management
                Services                               Services


Energy & Carbon Management offers clients a turn-key solution shop for all of
their energy, water and carbon management needs.  Our core services are:

Data Management Services (Data Hub)
At the heart of our state-of-the-art utility management services is a high-quality Data Hub.
Energy & Carbon Management invests heavily in information technology, recruitment and
training to ensure that our Data Hub is able to provide Data Management Services that are
at the cutting edge of our industry. The result is that all of our reporting and analysis is
based on high quality reliable information.

Procurement Management Services
We provide Procurement Management Services to all types of clients from SME
businesses through to blue chip organisations. Our solutions include fixed-price
contracting, market tracker funds, flexible risk-managed contracts and green energy
procurement. Your energy strategy, which we will define together, will determine
which of these solutions is the right one for your organisation.

All our clients, large or small, receive the same service level in relation to the timing
of their transactions, making it possible to manage the risks inherent in volatile
energy markets. So, when the market is moving against our clients, we make sure that
they are not subject to sharp and disproportionate price increases. Equally, when the
market moves in the right direction, they are in a position to take maximum advantage
of lower prices.

Energy Management Services
Our Energy Management Services portfolio uses a two-level service approach which
focuses on:
•	 The elimination of wastage which we are able to identify from in-depth analysis
    of the data relating to your energy usage
•	 The introduction of new behaviours, management processes and new technologies
    in order to reduce energy consumption.
With the information technology tools at our disposal, we are able to identify, manage and
monitor energy management projects, ranging from the change of control settings to the
introduction of smart metering, or the installation of alternative generation plant.

Water Management Services
Our Water Management Services concentrate on both the price and volume of water
and sewerage services. We examine all aspects of the tariffs that are available from
water supply companies and sewerage providers. This allows us to ensure that pricing
of services is optimised. As with our energy management services, we then analyse the
volume using a two-level approach. This involves the elimination of wastage and then the
introduction of new technologies and behaviours to reduce consumption.

Carbon Management Services
Carbon is rapidly becoming one of the most dominant areas of the energy market
due to the importance and the cost impact of carbon on businesses. Energy & Carbon
Management is fully expert in all aspects of compliance reporting required to satisfy
schemes such as Carbon Reduction Commitment (CRC), Climate Change Levy Agreements
(CCL) and, linked to our procurement strategy, the negotiation of Green Energy contracts
which can be surprisingly price competitive.
WHY CHOOSE ENERGY & CARBON
                   MANAGEMENT?
                   •	 Track record: we know the energy and carbon market and have a
                      20-year proven track record for delivering exceptional results for our
                      clients.


                   •	 Knowledge and experience: we are an established independent
                      service provider with the technical expertise, experience and market
                      intelligence required to provide high-quality energy management and
                      secure the best purchasing terms for your organisation.


                   •	 We understand the market: as the energy markets become more
                      complex with the introduction of new regulations, products, services
                      and legislative compliance needs, you can count on us to develop the
                      right purchasing and management strategies to meet your specific
                      energy requirements. This allows you to focus your time and effort on
                      your core business.


                   •	 Timing: in terms of managing energy prices, businesses are now
                      aware of the highly volatile nature of the markets so buying at the
                      right time is critical. Energy & Carbon Management aims to protect you
                      against price risk and to capitalise on price opportunity.

                    


                   OUR FEES
                   Market commissions
                   •	 Fees for our procurement activities are generally based on
                      commissions included in the energy supply contracts we negotiate on
                      your behalf. We also provide tailored price packages to suit specific
                      client requirements.


                   Share savings scheme
                   •	 Energy and Water Management Services are generally provided
                      on the basis of a share of savings contract in which there is no up-
                      front fee and we share the benefit of the recommendations that
                      are implemented. We can also provide alternative fee structures on
                      request.


                   Consultancy fees
                   •	 Carbon compliance work and general consulting activities are charged
                      on either a fixed fee or an agreed daily rate basis.

                   •	 Given the increasing complexity of managing their energy, water and
                      carbon compliance requirements, most organisations now find it far
                      more cost-effective to call on the assistance of experts rather than
                      trying to manage these in-house.




Energy & Carbon Management Limited,
Longley House, International Drive, Crawley, West Sussex RH10 6AQ
Tel: +44 01293 651218 Email: info@energyandcarbonmanagement.com
www.energyandcarbonmanagement.com
Energy & Carbon
                                  m a n a g e m e n t




                                  DATA MANAGEMENT SERVICES                                       

OUR GOAL                          At the heart of any energy and water management system
To optimise our clients’ short,
medium and long-term energy       there must be high-quality reliable data. Our Data Hub and
and carbon costs through the      resulting Data Management Services are key to our ability
design and implementation
of cost-effective purchasing
                                  to provide our clients with a range of high-value services.
strategies, volume reduction      The high complexity of energy billing procedures means that most organisations
programmes and full
legislative compliance.           find it difficult and time consuming to check whether their energy bills are correct
                                  and very few are able to use billing data for effective management and monitoring
                                  of their energy consumption. This is where the power of of our Data Hub proves
                                  so valuable, allowing our clients not only to be sure that billing errors are quickly
                                  identified, but also providing exception reporting and both internal and external
                                  benchmarks. As a result, anomalies are rapidly identified and corrected, leading
                                  frequently to both future cost savings and refunds on prior over-payments.

                                  Energy & Carbon Management has invested significantly in specialist state-
                                  of-the-art IT systems and in the creation of a dedicated Data Hub within
                                  our Data Management department. The Data Hub sits at the heart of the
                                  business and generates meaningful reports directly to clients. It also provides
                                  the base data upon which all of our other services are performed.


                                     Our Core Values
                                     In all our client relationships we are committed to being:
                                     •	Independent of all suppliers so that we can give genuine balanced advice
                                     •	Expert in the things that we do, so that our clients can rely upon the
                                       solutions that we propose
                                     •	Highly ethical and transparent in our dealings and transactions with
                                       suppliers and clients
                                     •	To underpin these values Energy & Carbon Management subscribes to the
                                       Association of Cost Management’s Code of Practice.
Metering Services
                                                                                                              Energy & Carbon Management will manage
                                                                                                              all aspects of your metering in relation to
                                                                                                              meter operating contracts and the AMR
        DATA SOURCES                                                                                          agreement. We also project manage the
                                                                                                              installation of these to ensure that they are
                                                                                                              done on time and with minimum disruption.
        Billing Information                                                                                   We further ensure that the data that has
                                                                                                              been produced by the AMR is being used in
  Mechanical Meter Information
                                                   DATA                                                       relation to the utility invoices which have
                                                   HUB                                                        been raised and which are subject to the
                                                                                                              invoice validation procedures.
     AMR and HH Information
                                                                                                              Tenant Re-billing Services
          Client Site Reads                                                                                   For those clients that have tenants, with
                                                                                                              or without sub meters, Energy & Carbon
                                                                                                              Management can provide a fully serviced
                                                                                                              tenant re-billing programme to ensure that
                                                                                                              all tenants are re-billed the appropriate
                                                                                                              proportion of the main incoming invoices
                                                                                                              on a frequency agreed with the client. This
                                                                                                              is done right through to the point where the
Invoice Validation                                    Budget Services                                         invoice is prepared for release to the tenant.
Our Invoice Validation Service carries out a          One of the principal reports generated from             Property management clients, particularly,
35-point check of every invoice which goes            the data management system are budgets and              find this type of service to be invaluable.
into the database to ensure that it satisfies the     accrual calculations for all client utility activity.
highest standards of accuracy required.                                                                       Forensic Audit
                                                      Working in tandem with your finance                     For all existing clients and new clients,
Invoices are generally checked electronically         department and your budgeting timetable,                Energy & Carbon Management’s Data
through our automated bill-checking                   we can prepare accurate monthly energy                  Management Department undertakes a
system and a growing number of suppliers              flow forecasts and financial budgets for                forensic analysis of all historic invoices
are now providing their data directly to              all utilities. Once into the budget year, we            they have reviewed. This ensures that they
us electronically. We provide reports to              also provide an actual-to-budget analysis               have been billed and charged correctly,
clients showing all invoices which have               together with an accrual calculation.                   particularly the hidden components
been processed in a particular period or by           The budget reports are produced both in                 within distribution and transmission
exception, highlighting those where problems          terms of analysis and volumes so that                   charges. We have been very successful
have been identified. Our query resolution            we can compare target consumptions to                   in identifying a significant number of
service then deals with any error rectification.      actual consumption, together with target                refunds in this area and others.
                                                      expenditure to actual expenditure.
As a further enhancement of this service, we                                                                  Tariff Optimisation
also provide an invoice settlement service, in        Estate Management Services                              One of the most frequently overlooked
which we manage the payment of the invoices           Client businesses do not remain static.                 aspects of managing utilities, particularly
directly with the suppliers on your behalf.           Invariably we see the need for additional               in electricity, is the correct application
                                                      supplies for utilities being demanded by client         of tariff to any cost. We undertake a very
Query Resolution Services                             sites, or indeed to supplies being rendered             detailed review of every aspect of utility
The purpose of the query resolution service           redundant. Clients acquire sites and also               invoices when they are being processed
is to take often difficult, complex and time-         dispose of them. Our estate management                  into the database. This ensures that
consuming tasks away from our clients.                service ensures that all meters which require           the tariff structures in use are being
Queries arise from three principal areas:             either energisation or de-energisation are              applied correctly. Tariff Optimisation is
the invoice, the client or the supplier. Our          done so according to preset timetables with             an additional service to our procurement
highly experienced Data Management                    clients. We also provide a full change of               management services. Just through the
Team provides a full cradle-to-grave                  tenancy service for clients who are either              correct application of tariff structures
resolution service for all raised queries             acquiring or disposing of sites to ensure that          we have been able to find savings of up to
so they can be effectively resolved.                  all liabilities are properly evaluated.                 50% of the annual cost on client sites.




Energy & Carbon Management Limited,
Longley House, International Drive, Crawley, West Sussex RH10 6AQ
Tel: +44 01293 651218 Email: info@energyandcarbonmanagement.com
www.energyandcarbonmanagement.com
Energy & Carbon
                                  m a n a g e m e n t




                                  PROCUREMENT MANAGEMENT SERVICES
OUR GOAL                          Over the last five years we have seen prices rise by as much
To optimise our clients’ short,
medium and long-term energy       as 100% and fall by as much as 50% in a 12-month period.
and carbon costs through the
design and implementation
of cost-effective purchasing                                                                                                                                                    Electricity Annual Pricing Curve
                                     £64.00
strategies, volume reduction
programmes and full                  £61.00


legislative compliance.
                                     £58.00




                                     £55.00




                                     £52.00
                                   £ MW




                                     £49.00




                                     £46.00




                                     £43.00




                                     £40.00




                                     £37.00




                                     £34.00
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                                          Our Core Values
                                          In all our client relationships we are committed to being:
                                          •	Independent of all suppliers so that we can give genuine balanced advice
                                          •	Expert in the things that we do, so that our clients can rely upon the
                                            solutions that we propose
                                          •	Highly ethical and transparent in our dealings and transactions with
                                            suppliers and clients
                                          •	To underpin these values Energy & Carbon Management subscribes to the
                                            Association of Cost Management’s Code of Practice.
The Challenge   The challenge for all businesses buying utilities in today’s
                deregulated market is how to manage their long-term energy
                costs in an environment of rapid and significant price volatility


                The markets, too, have become much more sophisticated
                resulting in a myriad of complex new products which
                organisations can use with different suppliers and which are
                geared to eliminating some of the risks involved in procurement.
                For certain supplies, access to price is becoming more difficult
                or is time restricted. Credit insurance has also become vital
                with many users being denied offers or having to pay significant
                security deposits.


                The procurement service which Energy & Carbon Management
                has developed addresses all of these key issues. We offer a
                complete procurement solution from the smallest SME business
                through to the largest blue chip corporate client.


                When the market moves against our clients, we ensure that
                they are not subject to sharp price increases. Equally, when
                market conditions are favourable, our clients can take maximum
                advantage.
Our methodology is simple and straightforward. All clients are different in
their structure, mix of supplies and volumes used. More importantly, clients have different     Procurement
credit risk profiles and appetites for their involvement in the procurement process and for
the risks that they are prepared to take in attempting to obtain the best possible prices       Solutions
available. We have therefore designed a system to create bespoke procurement strategies
for each of our clients which meets their specific needs based on their particular risk,
credit appetites and profiles.

At the heart of the procurement policy is the concept of Continual Market Price
Assessment. As soon as we have entered into a contract on behalf of our client
we immediately start monitoring the market in relation to the prices available for
the subsequent contract. We also report to each client on how the market has moved,
translating those reports into the clients’ own budgets and budgetary totals.

Energy & Carbon Management Limited forecast budget reports can be issued on a
daily, weekly or monthly basis. Our clients never have surprises in terms of sudden
and unexpected movements in budget. Our philosophy is to keep you fully informed
at all times.



We have a three-step process as follows:
1 	 Risk Profile: the client’s own appetite for risk in terms of the products that may be       The 
    available to them and their credit risk in the market, is assessed.
2 	 Product Evaluation: once the Risk Profile is established, we undertake a Product            Procurement
    Evaluation in order to establish which products are available from which suppliers for
    the volumes that a particular client may have.                                              Process
3 	 Procurement strategy: a further meeting with the client reviews all of the products
    which are available in the context of the risk profile which has been established.
    A procurement strategy then evolves which is unique to that client and which will then
    be implemented by our Procurement Team.



                                                       Procurement
                                                       strategy
                             Product
     Risk                    Evaluation
     PROFILE



Each client-specific Procurement Strategy is unique. Common to all strategies
however, is the concept of constant and Continual Market Assessment. We have developed          Procurement
a wide range of Procurement Strategies. Some of the most popular include:
1 	 Fixed Priced Contracting: 100% of the energy load is procured in a single contract for      Strategies
    an agreed period of time. The fixed price strategy is always offered with a dynamic
    cap linked to Constant Market Price Assessment.
2 	 Flexible Contracts: the alternative to Fixed Price Contracts are Flexible Contracts and
    here there are a huge number of options. The principal idea behind all of them is to
    reduce the risk of contracting all the electricity at a high price by spreading that risk
    across a number of transactions, the number of which will be dictated by the size and
    type of client volume being contracted and the various supplier products available.

The simplest form of Flexible Contract is a Market Tracker with which on a monthly or
quarterly basis, the client takes whatever price the market gives for that period of time. In
the medium term the client should achieve a market average price.

A variant of the Market Tracker is to have a part fixed and part tracker contract, in which
the client agrees to fix a proportion of the volume at a set market rate and allows the
remainder to float. A proactive, dynamic cap is placed to monitor the market and contract
the fixed element while the floating element moves with the market average.

Flexible purchasing can be further extended by breaking down the client’s supply
requirements into a number of separate transactions and contracting each of those
according to a specific strategy, thereby spreading the risk. Each transaction within the
purchasing strategy is subject to our Constant Market Price Assessment.
Fixed or Flexible Contracts
                    There is no right or wrong answer as to whether fixed or flexible
                    contracts should be used for any particular client. Fixed contracts
                    do have the attraction of requiring minimal input from the client
                    and transacting the entire energy load at the same time, thus
                    ‘putting to bed’ the issue for a period of time. However, it does run
                    the risk of the contract being secured at a price higher than could
                    be achieved under a flexible contract structure. Flexible contracts
                    require clients to have more of an input into the procurement
                    strategy and its execution, but provide a number of additional
                    benefits such as the ability to transact contracts very quickly and
                    access to a range of products that are not available under a fixed
                    contract regime.




                    Working with us
                    The Procurement Strategy is agreed between the client and
                    their Client Manager and thereafter the Procurement Analyst
                    takes over to implement the strategy. An agreed reporting
                    frequency is put into place, providing forecasting and reporting
                    on a daily, weekly or monthly basis to each client. As the
                    predetermined trigger points are hit within each strategy,
                    the transactions are undertaken on the client’s behalf.




                    Results
                    Energy & Carbon Management has an envious reputation in
                    terms of results and with the proven methodology which we
                    have developed over recent years, we are confident in the value
                    that unique procurement strategies bring to each of our clients.
                    These strategies have been shown to satisfy our clients’ needs
                    and provide the best possible opportunities to secure effective
                    competitive pricing in these increasingly volatile markets.




Energy & Carbon Management Limited,
Longley House, International Drive, Crawley, West Sussex RH10 6AQ
Tel: +44 01293 651218 Email: info@energyandcarbonmanagement.com
www.energyandcarbonmanagement.com
Energy & Carbon
                                  m a n a g e m e n t




                                  ENERGY MANAGEMENT SERVICES
OUR GOAL
To optimise our clients’ short,
medium and long-term energy       Our Energy Management Services programme focuses on
and carbon costs through the      reducing energy consumption volumes on a site by site basis.
design and implementation         When combined with our Procurement Services programme,
of cost-effective purchasing
                                  this makes for a very powerful approach for the management,
strategies, volume reduction
programmes and full               control and reduction of utility costs generally.
legislative compliance.            
                                  In addition, the proactive energy management service which we
                                  offer assists those clients who are exposed to Carbon Reduction
                                  Commitment (CRC) reporting in reducing their carbon payments and
                                  also assists those clients who are involved in utility management
                                  programmes such as CCL to achieve their objectives.

                                  Energy Management Services can be run in conjunction with various
                                  potential funding sources and enhanced capital allowances. They can
                                  also relate directly to programmes being undertaken under Climate
                                  Change Levy Agreements and in relation to the Carbon Trust.



                                    Our Core Values
                                    In all our client relationships we are committed to being:
                                    •	Independent of all suppliers so that we can give genuine balanced advice
                                    •	Expert in the things that we do, so that our clients can rely upon the
                                      solutions that we propose
                                    •	Highly ethical and transparent in our dealings and transactions with
                                      suppliers and clients
                                    •	To underpin these values Energy & Carbon Management subscribes to the
                                      Association of Cost Management’s Code of Practice.
Our service approaches energy management at three levels 



                                                REDUCING ENERGY VOLUMES


                            Wastage                           TECHNOLOGY                             Alternative
                           elimination                          CHANGE                               GENERATION




Our energy management                              clients which identify those sites which are       Technology Change 
objectives:                                        inefficient and which raise questions over the     The second level of the service is aimed at
                                                   efficiency of energy usage on the sites.           introducing new technologies where capital
•	   To eliminate wastage of energy on                                                                investment is generally needed in order to
     all client sites through identifying          The recommendations which we produce               create a saving. Energy & Carbon Management
     behavioural change and control change         for our clients within Wastage Analysis are        undertakes a full project appraisal to identify
     which can bring about rapid cost-free         no-cost and low-cost solutions:                    the cost-benefit analysis of any particular
     savings.                                                                                         technological change. Where the recommended
                                                   Where we have identified from consumption          energy saving solutions are approved by the
•	   To identify technological change which        profiles that usage of power and gas is            client, we are fully equipped to provide all the
     can then bring about a wholesale              plainly inefficient, solutions can generally be    necessary project management to ensure rapid
     reduction in the energy consumed in           made through behavioural change.                   installation and implementation.
     various aspects of a client’s building.                                                           
                                                   We undertake specific analysis of all              Some of the technologies which we will look
•	   To look at alternative forms of generation,   information provided and, for example,             at on behalf of our clients can include: voltage
     which may in the long run, provide            look at the load factor, power factor and          optimisation, power factor correction, lighting
     greener and lower cost generation             night usage proportions for electricity. We        and lighting controls, boiler controls, air-
     sources.                                      then normalise the data for comparison on          conditioning analysis and motor speed controls.
                                                   a like-for-like basis, such as energy per
Wastage Elimination                                square metre or per cubic metre, per capita        Alternative Generation
The elimination of wastage is primarily            or per unit of output, or according to any         The third and final level of our Energy
a desktop service provided through the             other metric which may be relevant for a           Management Services relates to sourcing
analysis of good-quality data taken from           particular client.                                 alternative generation and in this area we
our Data Hub. We benchmark this data                                                                  examine feed-in tariffs available and the
against other similar sites or similar             Generally, we identify the simple, low-cost,       economics of investing in micro generation, on
sites from within a client database.               or no cost changes that can be made to the         site generation or, alternative local generation
                                                   way in which energy is consumed. This can          sources which may be available to a particular
Alongside benchmarking, we carry out an            generate significant and realistic savings for     client in a particular area. 
in-depth interrogation of all available half-      a client very quickly.                              
hourly electricity data and AMR-generated                                                             All our Energy Management Services can
electricity and gas data. The accurate             As part of the wastage elimination services        be run in conjunction with various potential
data allows us to precisely profile supply         we also identify areas in metering, or             funding sources and enhanced capital
consumption patterns.                              other technical aspects to do with the             allowances. They can also relate directly to
                                                   measurement of energy, which can                   programmes being undertaken under Climate
From the benchmarking and interrogation            provide significant reductions in measured         Change Levy Agreements and in relation to the
analysis, we produce reports for our               consumption and therefore cost.                    Carbon Trust.




Energy & Carbon Management Limited,
Longley House, International Drive, Crawley, West Sussex RH10 6AQ
Tel: +44 01293 651218 Email: info@energyandcarbonmanagement.com
www.energyandcarbonmanagement.com
Energy & Carbon
                                  m a n a g e m e n t




                                  CARBON MANAGEMENT SERVICES
OUR GOAL
                                  The carbon market is one of the most rapidly expanding markets in the world.
To optimise our clients’ short,
medium and long-term energy       Businesses are becoming increasingly aware of their obligations to reduce
and carbon costs through the      their environmental impact, and for larger companies, the management
design and implementation         of carbon is becoming a feature in corporate responsibility statements.
of cost-effective purchasing
strategies, volume reduction
programmes and full               Our Carbon Management Service uses the information collected from
legislative compliance.           our Data Hub and combines it with our Energy Management Service to
                                  effectively measure, monitor and manage each client’s carbon footprint.
                                  Access to green energy contracts through our Procurement Service
                                  coupled with a sophisticated method of buying Carbon Credits, enhances
                                  our clients’ Carbon Management Strategy giving them the ability to deal
                                  confidently with future challenges and demonstrate their achievements
                                  through strong and meaningful corporate responsibility statements.

                                  As the carbon market continues to unfold in the UK, the need to purchase carbon
                                  credits within a volatile market has emerged. Combined with our reporting
                                  services, we offer a Carbon Credit Procurement Service.



                                     Our Core Values
                                     In all our client relationships we are committed to being:
                                     •	Independent of all suppliers so that we can give genuine balanced advice
                                     •	Expert in the things that we do, so that our clients can rely upon the
                                       solutions that we propose
                                     •	Highly ethical and transparent in our dealings and transactions with
                                       suppliers and clients
                                     •	To underpin these values Energy & Carbon Management subscribes to the
                                       Association of Cost Management’s Code of Practice.
Carbon                                    Carbon Reduction Commitment Scheme (CRC)
Management                                      CRC                  Calculation              Calculation                 Purchase
Strategy                                   Registration               of Carbon
                                                                      Footprint
                                                                                               of Annual
                                                                                              CRC Return
                                                                                                                          of Carbon
                                                                                                                           Credits
The volume of carbon for which any
organisation is responsible is directly
related to the quantity of energy it      Registration                                        that clients’ audit reports are produced on time
consumes. Our Data Hub provides           The registration limits for the Carbon              and to the required levels of precision.
the backbone of the information that      Reduction Commitment are 6 million kWh of
is used within all carbon reports.        electricity taken through half-hourly settled       The resultant calculations of the volume
                                          electricity meters by one single organisation.      of carbon which is being generated by a
Using our Procurement Management          The definition of an organisation is complex        particular organisation has a direct financial
Services, we can specifically tailor      but essentially relates to the highest parent       implication and can be managed.
energy supply contracts to be based       business for any group of businesses.
on standard energy, part green            If half- hourly electricity consumption             Through our Energy Management Services
energy, or full green energy. Having      exceeds the 6 million kWh level, then there         programmes, we assist our clients in
the right procurement strategy in         is a mandatory obligation on behalf of              eliminating wastage and therefore, the
place can influence certain aspects       clients to register with the Carbon Reduction       amount of carbon which they report. By
of carbon reporting and help to           Commitment Scheme and engage with it.               actively reducing their energy consumption,
strengthen any organisation’s                                                                 our clients can reduce the amount of carbon
corporate responsibility statement.       The consequences of non-compliance                  credits they will need to purchase.
                                          are important, as failure to register and
Our Energy Management Service,            participate or to provide information which         Carbon Credit Purchases
which is geared to eliminating            shows that participation is not necessary, can      For qualifying organisations, carbon credits
wastage and then reducing energy          result in penalties.                                will need to be purchased by 2012. Initially,
volume, is a complementary                                                                    there will be a regulated price framework but
service to our Carbon Management          Footprints and                                      when this is deregulated in the medium term,
Service. The policies which are           Annual Reporting                                    it is estimated that the price of Carbon Credits
enacted by Energy Management              Carbon Footprint calculation and                    could triple, from an initial price estimated to
Services will have the direct impact      subsequent annual reports are detailed              be a 10% surcharge on energy bills to a 30%
of reducing carbon volumes.               audit requirements which need to be                 surcharge based on late 2011 price levels. For
                                          carried out for every phase of the Carbon           larger consumers it is essential that a robust
Dependant upon the carbon reduction       Reduction Commitment. We have all the               Carbon Commitment programme is conceived
programmes our clients are involved       necessary expertise to successfully complete        and implemented so as to generate savings,
with, the Carbon Management Service       annual footprint reports for our clients.           both through reduced energy purchases and
then produces all the reporting to                                                            the reduced amount of Carbon Credits that
ensure compliance with the various        The audit work is complex and time-consuming        will need to be purchased in the future.
schemes they are involved with. These     and accuracy is absolutely essential. Reports
schemes may be purely for in-house        must be submitted for the correct periods and       As with all Energy & Carbon Management
information, related to a Climate         by specified deadlines. Failure to do so can        programmes, the provision of clean, accurate
Change Levy Agreement, a Carbon           result in significant penalties being levied.       and complete data is absolutely essential to
Trust initiative, or for the Carbon       Through exploiting the analytical and reporting     an effective Carbon Commitment programme,
Reduction Commitment Scheme which         capacities of Energy & Carbon Management’s          linking back once more to the Data Hub which
is explained in detail below.             technologically advanced Data Hub, we ensure        sits at the centre of our business.




                      DATA HUB                                                              CARBON REPORTING

                                                   CARBON
                    ENERGY                                                                   CARBON CREDIT
                  MANAGEMENT                     MANAGEMENT
                   SERVICES                                                                  PROCUREMENT
                                                  SERVICES
                 PROCUREMENT                                                                   CORPORATE
                 MANAGEMENT                                                                  RESPONSIBILITY
                   SERVICES                                                                    STATEMENT

Energy & Carbon Management Limited,
Longley House, International Drive, Crawley, West Sussex RH10 6AQ
Tel: +44 01293 651218 Email: info@energyandcarbonmanagement.com
www.energyandcarbonmanagement.com
Energy & Carbon
                                  m a n a g e m e n t




                                  WATER MANAGEMENT SERVICES
OUR GOAL
To optimise our clients’ short,   The cost of water and sewerage has risen consistently year-on-year
medium and long-term energy       since the deregulation of the water industry over 20 years ago.
and carbon costs through the
design and implementation
                                  Despite significant attempts to introduce competition into the
of cost-effective purchasing
strategies, volume reduction      water and sewerage industry, there is limited capacity for
programmes and full               any client to engage with a provider of water or sewerage
legislative compliance.           services other than their local monopoly supplier. Within that
                                  context Energy & Carbon Management has developed a Water
                                  Management Service which concentrates on the two fundamental
                                  aspects of water and sewerage costs: price and volume.

                                  Our Water Management Service has been developed to undertake
                                  a constant year-on-year review of the tariff structures which
                                  suppliers offer thus ensuring that client prices are minimised.
                                  This approach is coupled to an ongoing and continuous review of
                                  water volumes geared to eliminating waste and reducing volume.
                                  Our analysts review every supply regularly to ensure that savings
                                  are sustained and consumption does not increase in the future.


                                    Our Core Values
                                    In all our client relationships we are committed to being:
                                    •	Independent of all suppliers so that we can give genuine balanced advice
                                    •	Expert in the things that we do, so that our clients can rely upon the
                                      solutions that we propose
                                    •	Highly ethical and transparent in our dealings and transactions with
                                      suppliers and clients
                                    •	To underpin these values Energy & Carbon Management subscribes to the
                                      Association of Cost Management’s Code of Practice.
Tariff Analysis
The water industry is fundamentally
developed on the basis of available public
                                                                      REDUCING WATER VOLUMES
tariffs, as opposed to any kind of private
arrangement that can be reached between a
user and the water or sewerage provider.
                                                    Wastage                                  Volume                         Alternative
UK water companies generally publish their
tariffs on 1 April each year which apply for       elimination                              Reduction                        sources/
a 12–month period. Tariffs are becoming                                                    Technology                        disposal
increasingly sophisticated and complex and
generally cover the following components of                                                                                  methods
all charges:
  	 Water supply
  	 Water meter standing charges                  Volume ANALYSIS                                   2 New Technology
  	 Foul sewerage removal costs                   Once our tariff analysis work is complete,        Defining opportunities for the introduction of
  	 Foul sewerage standing charge                 we then seek to reduce the volume of water        new technologies in order to reduce water
  	 Rateable value or area based surface          consumed and sewerage disposed.                   consumption, is a service which we propose
     water drainage charges                                                                         to all our clients as there are certain solutions
  	 Highway drainage charges                      Our analysis falls, as it does with our Energy    which can be applied to almost all water-
  	 Trade effluent charges                        Management Service, into three categories:        using sites. There are also differences in
                                                  1 	 The elimination of wastage                    requirements and some clients may need
Based on the data that we have processed          2 	 The introduction of new technology in         specific technologies applied to gain the
through our Data Hub, we carry out                    order to reduce water volumes                 maximum reduction in water consumption.
in-depth analysis of each client’s situation.     3 	 Investigation into alternative water          Generally, the capital return on water-saving
The volumes of water and sewerage which               sources or disposal methods.                  equipment is attractive and clients can expect
are currently being purchased are bench-                                                            good returns on their investment.
marked against all available tariffs. This        1 Wastage Elimination
ensures that correct pricing has been             Wastage elimination is generally carried          3 Alternative Water Sources
applied and shows whether opportunities           out through the analysis of volume                For those clients who have a demand for
exist to generate a financial saving for          utilisation and the benchmarking of those         non-potable water, there can be significant
a client. Energy & Carbon Management              measurements against similar properties of        scope to look at alternative water sources.
then takes over the administration and            other clients or of the same client. Here we      Energy & Carbon Management is experienced
implementation of those savings to ensure         are looking to benchmark water against the        in carrying out the full survey and project
an effective and rapid conclusion.                factors driving the consumption level, which      management work required to take ideas from
                                                  can be either the number of people who are        the drawing board through to final completion
Water tariffs that are available are extensive    working in a building, students in a college      and commissioning.
and complex in nature. An expert and rigorous     or the output of a factory where water is an
approach is necessary to ensure that costs        intrinsic part of the product, for example,       As new technologies or new water sources
are not only minimised but maintained at the      bread or concrete.                                become available, we bring those to our
lowest level from one year to another.                                                              clients’ attention on a regular basis. Through
                                                  Waste can generally be identified quite quickly   the use of our Data Hub, we ensure that those
As part of the tariff analysis service which      from the desktop analysis and we then follow      savings which have been realised, through
we provide for water and sewerage, we make        through with an on-site survey in order to        either the elimination of wastage, application
sure that all tariffs are reviewed on an annual   identify precisely where the wastage has          of new technology or the utilisation of
basis to ensure that our client is paying the     arisen and what needs to be done for savings      alternative supply sources are maintained on
correct price each year.                          to be secured.                                    an ongoing basis to the client’s benefit.

We also build a profile of how our clients
operate and can often identify additional                                                             Foul Sewerage &
savings, which can be generated from either
                                                                                                       Trade effluent
trade effluent charges, particularly sewerage
charges, and meter sizing. We further analyse       Incoming                    Client
surface area measurement charges which                Water                    premises
are particularly expensive throughout the                                                             Surface Water &
Midlands and the North of England.                                                                   Highway drainage




Energy & Carbon Management Limited,
Longley House, International Drive, Crawley, West Sussex RH10 6AQ
Tel: +44 01293 651218 Email: info@energyandcarbonmanagement.com
www.energyandcarbonmanagement.com

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Energy & Carbon Management Corporate Folder

  • 1. Energy & Carbon m a n a g e m e n t The increasing cost and price volatility of OUR GOAL To optimise our clients’ short, medium and long-term energy energy means that efficient procurement and carbon costs through the design and implementation and use of energy is now a high priority in all of cost-effective purchasing strategies, volume reduction programmes and full organisations. legislative compliance. Our long established expertise allows our clients to manage the risks involved in energy procurement and achieve meaningful reductions in energy consumption. Our Core Values In all our client relationships we are committed to being: • Independent of all suppliers so that we can give genuine balanced advice • Expert in the things that we do, so that our clients can rely upon the solutions that we propose • Highly ethical and transparent in our dealings and transactions with suppliers and clients • To underpin these values Energy & Carbon Management subscribes to the Association of Cost Management’s Code of Practice.
  • 2. Who we are Energy & Carbon Management is a leading independent UK consultancy specialising in the procurement and management of energy and carbon services. Our success is built on a 20-year track record of consistently delivering strong financial and environmental results for our clients.  Recognising the increased value that results from having specialist advice close at hand, we have organised our service delivery through a national network of locally-based client managers backed by a central team of technical and market experts. The effectiveness of this system is shown by the outstanding loyalty of our clients, allowing us to boast a 95% client retention rate. Our goals are clear: to secure the best purchasing terms for our clients, to reduce the volume of energy which is consumed, and to ensure they are compliant with all carbon legislation. Energy and water are economic necessities for all organisations. We aim to: • Secure the best energy purchase terms for our clients so they buy their supplies at the lowest possible price, respecting the client-specific energy strategies we have determined together • Reduce energy and water volumes through optimized management processes and where appropriate, advanced technical solutions • Ensure that invoicing received from suppliers is consistent with the contract negotiations and free of errors • Ensure clients comply now and in the future with government regulations, particularly those relating to carbon emissions • Remove the burden of complex compliance reporting, where required.
  • 3. Procurement ENERGY OUR SERVICES Management Management Services Services DATA HUB Carbon Water Management Management Services Services Energy & Carbon Management offers clients a turn-key solution shop for all of their energy, water and carbon management needs.  Our core services are: Data Management Services (Data Hub) At the heart of our state-of-the-art utility management services is a high-quality Data Hub. Energy & Carbon Management invests heavily in information technology, recruitment and training to ensure that our Data Hub is able to provide Data Management Services that are at the cutting edge of our industry. The result is that all of our reporting and analysis is based on high quality reliable information. Procurement Management Services We provide Procurement Management Services to all types of clients from SME businesses through to blue chip organisations. Our solutions include fixed-price contracting, market tracker funds, flexible risk-managed contracts and green energy procurement. Your energy strategy, which we will define together, will determine which of these solutions is the right one for your organisation. All our clients, large or small, receive the same service level in relation to the timing of their transactions, making it possible to manage the risks inherent in volatile energy markets. So, when the market is moving against our clients, we make sure that they are not subject to sharp and disproportionate price increases. Equally, when the market moves in the right direction, they are in a position to take maximum advantage of lower prices. Energy Management Services Our Energy Management Services portfolio uses a two-level service approach which focuses on: • The elimination of wastage which we are able to identify from in-depth analysis of the data relating to your energy usage • The introduction of new behaviours, management processes and new technologies in order to reduce energy consumption. With the information technology tools at our disposal, we are able to identify, manage and monitor energy management projects, ranging from the change of control settings to the introduction of smart metering, or the installation of alternative generation plant. Water Management Services Our Water Management Services concentrate on both the price and volume of water and sewerage services. We examine all aspects of the tariffs that are available from water supply companies and sewerage providers. This allows us to ensure that pricing of services is optimised. As with our energy management services, we then analyse the volume using a two-level approach. This involves the elimination of wastage and then the introduction of new technologies and behaviours to reduce consumption. Carbon Management Services Carbon is rapidly becoming one of the most dominant areas of the energy market due to the importance and the cost impact of carbon on businesses. Energy & Carbon Management is fully expert in all aspects of compliance reporting required to satisfy schemes such as Carbon Reduction Commitment (CRC), Climate Change Levy Agreements (CCL) and, linked to our procurement strategy, the negotiation of Green Energy contracts which can be surprisingly price competitive.
  • 4. WHY CHOOSE ENERGY & CARBON MANAGEMENT? • Track record: we know the energy and carbon market and have a 20-year proven track record for delivering exceptional results for our clients. • Knowledge and experience: we are an established independent service provider with the technical expertise, experience and market intelligence required to provide high-quality energy management and secure the best purchasing terms for your organisation. • We understand the market: as the energy markets become more complex with the introduction of new regulations, products, services and legislative compliance needs, you can count on us to develop the right purchasing and management strategies to meet your specific energy requirements. This allows you to focus your time and effort on your core business. • Timing: in terms of managing energy prices, businesses are now aware of the highly volatile nature of the markets so buying at the right time is critical. Energy & Carbon Management aims to protect you against price risk and to capitalise on price opportunity.   OUR FEES Market commissions • Fees for our procurement activities are generally based on commissions included in the energy supply contracts we negotiate on your behalf. We also provide tailored price packages to suit specific client requirements. Share savings scheme • Energy and Water Management Services are generally provided on the basis of a share of savings contract in which there is no up- front fee and we share the benefit of the recommendations that are implemented. We can also provide alternative fee structures on request. Consultancy fees • Carbon compliance work and general consulting activities are charged on either a fixed fee or an agreed daily rate basis. • Given the increasing complexity of managing their energy, water and carbon compliance requirements, most organisations now find it far more cost-effective to call on the assistance of experts rather than trying to manage these in-house. Energy & Carbon Management Limited, Longley House, International Drive, Crawley, West Sussex RH10 6AQ Tel: +44 01293 651218 Email: info@energyandcarbonmanagement.com www.energyandcarbonmanagement.com
  • 5. Energy & Carbon m a n a g e m e n t DATA MANAGEMENT SERVICES   OUR GOAL At the heart of any energy and water management system To optimise our clients’ short, medium and long-term energy there must be high-quality reliable data. Our Data Hub and and carbon costs through the resulting Data Management Services are key to our ability design and implementation of cost-effective purchasing to provide our clients with a range of high-value services. strategies, volume reduction The high complexity of energy billing procedures means that most organisations programmes and full legislative compliance. find it difficult and time consuming to check whether their energy bills are correct and very few are able to use billing data for effective management and monitoring of their energy consumption. This is where the power of of our Data Hub proves so valuable, allowing our clients not only to be sure that billing errors are quickly identified, but also providing exception reporting and both internal and external benchmarks. As a result, anomalies are rapidly identified and corrected, leading frequently to both future cost savings and refunds on prior over-payments. Energy & Carbon Management has invested significantly in specialist state- of-the-art IT systems and in the creation of a dedicated Data Hub within our Data Management department. The Data Hub sits at the heart of the business and generates meaningful reports directly to clients. It also provides the base data upon which all of our other services are performed. Our Core Values In all our client relationships we are committed to being: • Independent of all suppliers so that we can give genuine balanced advice • Expert in the things that we do, so that our clients can rely upon the solutions that we propose • Highly ethical and transparent in our dealings and transactions with suppliers and clients • To underpin these values Energy & Carbon Management subscribes to the Association of Cost Management’s Code of Practice.
  • 6. Metering Services Energy & Carbon Management will manage all aspects of your metering in relation to meter operating contracts and the AMR DATA SOURCES agreement. We also project manage the installation of these to ensure that they are done on time and with minimum disruption. Billing Information We further ensure that the data that has been produced by the AMR is being used in Mechanical Meter Information DATA relation to the utility invoices which have HUB been raised and which are subject to the invoice validation procedures. AMR and HH Information Tenant Re-billing Services Client Site Reads For those clients that have tenants, with or without sub meters, Energy & Carbon Management can provide a fully serviced tenant re-billing programme to ensure that all tenants are re-billed the appropriate proportion of the main incoming invoices on a frequency agreed with the client. This is done right through to the point where the Invoice Validation Budget Services invoice is prepared for release to the tenant. Our Invoice Validation Service carries out a One of the principal reports generated from Property management clients, particularly, 35-point check of every invoice which goes the data management system are budgets and find this type of service to be invaluable. into the database to ensure that it satisfies the accrual calculations for all client utility activity. highest standards of accuracy required. Forensic Audit Working in tandem with your finance For all existing clients and new clients, Invoices are generally checked electronically department and your budgeting timetable, Energy & Carbon Management’s Data through our automated bill-checking we can prepare accurate monthly energy Management Department undertakes a system and a growing number of suppliers flow forecasts and financial budgets for forensic analysis of all historic invoices are now providing their data directly to all utilities. Once into the budget year, we they have reviewed. This ensures that they us electronically. We provide reports to also provide an actual-to-budget analysis have been billed and charged correctly, clients showing all invoices which have together with an accrual calculation. particularly the hidden components been processed in a particular period or by The budget reports are produced both in within distribution and transmission exception, highlighting those where problems terms of analysis and volumes so that charges. We have been very successful have been identified. Our query resolution we can compare target consumptions to in identifying a significant number of service then deals with any error rectification. actual consumption, together with target refunds in this area and others. expenditure to actual expenditure. As a further enhancement of this service, we Tariff Optimisation also provide an invoice settlement service, in Estate Management Services One of the most frequently overlooked which we manage the payment of the invoices Client businesses do not remain static. aspects of managing utilities, particularly directly with the suppliers on your behalf. Invariably we see the need for additional in electricity, is the correct application supplies for utilities being demanded by client of tariff to any cost. We undertake a very Query Resolution Services sites, or indeed to supplies being rendered detailed review of every aspect of utility The purpose of the query resolution service redundant. Clients acquire sites and also invoices when they are being processed is to take often difficult, complex and time- dispose of them. Our estate management into the database. This ensures that consuming tasks away from our clients. service ensures that all meters which require the tariff structures in use are being Queries arise from three principal areas: either energisation or de-energisation are applied correctly. Tariff Optimisation is the invoice, the client or the supplier. Our done so according to preset timetables with an additional service to our procurement highly experienced Data Management clients. We also provide a full change of management services. Just through the Team provides a full cradle-to-grave tenancy service for clients who are either correct application of tariff structures resolution service for all raised queries acquiring or disposing of sites to ensure that we have been able to find savings of up to so they can be effectively resolved. all liabilities are properly evaluated. 50% of the annual cost on client sites. Energy & Carbon Management Limited, Longley House, International Drive, Crawley, West Sussex RH10 6AQ Tel: +44 01293 651218 Email: info@energyandcarbonmanagement.com www.energyandcarbonmanagement.com
  • 7. Energy & Carbon m a n a g e m e n t PROCUREMENT MANAGEMENT SERVICES OUR GOAL Over the last five years we have seen prices rise by as much To optimise our clients’ short, medium and long-term energy as 100% and fall by as much as 50% in a 12-month period. and carbon costs through the design and implementation of cost-effective purchasing Electricity Annual Pricing Curve £64.00 strategies, volume reduction programmes and full £61.00 legislative compliance. £58.00 £55.00 £52.00 £ MW £49.00 £46.00 £43.00 £40.00 £37.00 £34.00 02/01/2009 02/02/2009 02/03/2009 02/10/2011 02/04/2009 02/11/2011 02/05/2009 02/12/2011 02/06/2009 02/07/2009 02/08/2009 02/09/2009 02/10/2009 02/11/2009 02/12/2009 02/01/2010 02/02/2010 02/03/2010 02/04/2010 02/05/2010 02/06/2010 02/07/2010 02/08/2010 02/09/2010 02/10/2010 02/11/2010 02/12/2010 02/01/2011 02/02/2011 02/03/2011 02/04/2011 02/05/2011 02/06/2011 02/07/2011 02/08/2011 02/09/2011 Our Core Values In all our client relationships we are committed to being: • Independent of all suppliers so that we can give genuine balanced advice • Expert in the things that we do, so that our clients can rely upon the solutions that we propose • Highly ethical and transparent in our dealings and transactions with suppliers and clients • To underpin these values Energy & Carbon Management subscribes to the Association of Cost Management’s Code of Practice.
  • 8. The Challenge The challenge for all businesses buying utilities in today’s deregulated market is how to manage their long-term energy costs in an environment of rapid and significant price volatility The markets, too, have become much more sophisticated resulting in a myriad of complex new products which organisations can use with different suppliers and which are geared to eliminating some of the risks involved in procurement. For certain supplies, access to price is becoming more difficult or is time restricted. Credit insurance has also become vital with many users being denied offers or having to pay significant security deposits. The procurement service which Energy & Carbon Management has developed addresses all of these key issues. We offer a complete procurement solution from the smallest SME business through to the largest blue chip corporate client. When the market moves against our clients, we ensure that they are not subject to sharp price increases. Equally, when market conditions are favourable, our clients can take maximum advantage.
  • 9. Our methodology is simple and straightforward. All clients are different in their structure, mix of supplies and volumes used. More importantly, clients have different Procurement credit risk profiles and appetites for their involvement in the procurement process and for the risks that they are prepared to take in attempting to obtain the best possible prices Solutions available. We have therefore designed a system to create bespoke procurement strategies for each of our clients which meets their specific needs based on their particular risk, credit appetites and profiles. At the heart of the procurement policy is the concept of Continual Market Price Assessment. As soon as we have entered into a contract on behalf of our client we immediately start monitoring the market in relation to the prices available for the subsequent contract. We also report to each client on how the market has moved, translating those reports into the clients’ own budgets and budgetary totals. Energy & Carbon Management Limited forecast budget reports can be issued on a daily, weekly or monthly basis. Our clients never have surprises in terms of sudden and unexpected movements in budget. Our philosophy is to keep you fully informed at all times. We have a three-step process as follows: 1 Risk Profile: the client’s own appetite for risk in terms of the products that may be The available to them and their credit risk in the market, is assessed. 2 Product Evaluation: once the Risk Profile is established, we undertake a Product Procurement Evaluation in order to establish which products are available from which suppliers for the volumes that a particular client may have. Process 3 Procurement strategy: a further meeting with the client reviews all of the products which are available in the context of the risk profile which has been established. A procurement strategy then evolves which is unique to that client and which will then be implemented by our Procurement Team. Procurement strategy Product Risk Evaluation PROFILE Each client-specific Procurement Strategy is unique. Common to all strategies however, is the concept of constant and Continual Market Assessment. We have developed Procurement a wide range of Procurement Strategies. Some of the most popular include: 1 Fixed Priced Contracting: 100% of the energy load is procured in a single contract for Strategies an agreed period of time. The fixed price strategy is always offered with a dynamic cap linked to Constant Market Price Assessment. 2 Flexible Contracts: the alternative to Fixed Price Contracts are Flexible Contracts and here there are a huge number of options. The principal idea behind all of them is to reduce the risk of contracting all the electricity at a high price by spreading that risk across a number of transactions, the number of which will be dictated by the size and type of client volume being contracted and the various supplier products available. The simplest form of Flexible Contract is a Market Tracker with which on a monthly or quarterly basis, the client takes whatever price the market gives for that period of time. In the medium term the client should achieve a market average price. A variant of the Market Tracker is to have a part fixed and part tracker contract, in which the client agrees to fix a proportion of the volume at a set market rate and allows the remainder to float. A proactive, dynamic cap is placed to monitor the market and contract the fixed element while the floating element moves with the market average. Flexible purchasing can be further extended by breaking down the client’s supply requirements into a number of separate transactions and contracting each of those according to a specific strategy, thereby spreading the risk. Each transaction within the purchasing strategy is subject to our Constant Market Price Assessment.
  • 10. Fixed or Flexible Contracts There is no right or wrong answer as to whether fixed or flexible contracts should be used for any particular client. Fixed contracts do have the attraction of requiring minimal input from the client and transacting the entire energy load at the same time, thus ‘putting to bed’ the issue for a period of time. However, it does run the risk of the contract being secured at a price higher than could be achieved under a flexible contract structure. Flexible contracts require clients to have more of an input into the procurement strategy and its execution, but provide a number of additional benefits such as the ability to transact contracts very quickly and access to a range of products that are not available under a fixed contract regime. Working with us The Procurement Strategy is agreed between the client and their Client Manager and thereafter the Procurement Analyst takes over to implement the strategy. An agreed reporting frequency is put into place, providing forecasting and reporting on a daily, weekly or monthly basis to each client. As the predetermined trigger points are hit within each strategy, the transactions are undertaken on the client’s behalf. Results Energy & Carbon Management has an envious reputation in terms of results and with the proven methodology which we have developed over recent years, we are confident in the value that unique procurement strategies bring to each of our clients. These strategies have been shown to satisfy our clients’ needs and provide the best possible opportunities to secure effective competitive pricing in these increasingly volatile markets. Energy & Carbon Management Limited, Longley House, International Drive, Crawley, West Sussex RH10 6AQ Tel: +44 01293 651218 Email: info@energyandcarbonmanagement.com www.energyandcarbonmanagement.com
  • 11. Energy & Carbon m a n a g e m e n t ENERGY MANAGEMENT SERVICES OUR GOAL To optimise our clients’ short, medium and long-term energy Our Energy Management Services programme focuses on and carbon costs through the reducing energy consumption volumes on a site by site basis. design and implementation When combined with our Procurement Services programme, of cost-effective purchasing this makes for a very powerful approach for the management, strategies, volume reduction programmes and full control and reduction of utility costs generally. legislative compliance.   In addition, the proactive energy management service which we offer assists those clients who are exposed to Carbon Reduction Commitment (CRC) reporting in reducing their carbon payments and also assists those clients who are involved in utility management programmes such as CCL to achieve their objectives. Energy Management Services can be run in conjunction with various potential funding sources and enhanced capital allowances. They can also relate directly to programmes being undertaken under Climate Change Levy Agreements and in relation to the Carbon Trust. Our Core Values In all our client relationships we are committed to being: • Independent of all suppliers so that we can give genuine balanced advice • Expert in the things that we do, so that our clients can rely upon the solutions that we propose • Highly ethical and transparent in our dealings and transactions with suppliers and clients • To underpin these values Energy & Carbon Management subscribes to the Association of Cost Management’s Code of Practice.
  • 12. Our service approaches energy management at three levels  REDUCING ENERGY VOLUMES Wastage TECHNOLOGY Alternative elimination CHANGE GENERATION Our energy management clients which identify those sites which are Technology Change objectives: inefficient and which raise questions over the The second level of the service is aimed at   efficiency of energy usage on the sites. introducing new technologies where capital • To eliminate wastage of energy on   investment is generally needed in order to all client sites through identifying The recommendations which we produce create a saving. Energy & Carbon Management behavioural change and control change for our clients within Wastage Analysis are undertakes a full project appraisal to identify which can bring about rapid cost-free no-cost and low-cost solutions: the cost-benefit analysis of any particular savings.   technological change. Where the recommended Where we have identified from consumption energy saving solutions are approved by the • To identify technological change which profiles that usage of power and gas is client, we are fully equipped to provide all the can then bring about a wholesale plainly inefficient, solutions can generally be necessary project management to ensure rapid reduction in the energy consumed in made through behavioural change. installation and implementation. various aspects of a client’s building.     We undertake specific analysis of all Some of the technologies which we will look • To look at alternative forms of generation, information provided and, for example, at on behalf of our clients can include: voltage which may in the long run, provide look at the load factor, power factor and optimisation, power factor correction, lighting greener and lower cost generation night usage proportions for electricity. We and lighting controls, boiler controls, air- sources. then normalise the data for comparison on conditioning analysis and motor speed controls. a like-for-like basis, such as energy per Wastage Elimination square metre or per cubic metre, per capita Alternative Generation The elimination of wastage is primarily or per unit of output, or according to any The third and final level of our Energy a desktop service provided through the other metric which may be relevant for a Management Services relates to sourcing analysis of good-quality data taken from particular client. alternative generation and in this area we our Data Hub. We benchmark this data   examine feed-in tariffs available and the against other similar sites or similar Generally, we identify the simple, low-cost, economics of investing in micro generation, on sites from within a client database. or no cost changes that can be made to the site generation or, alternative local generation   way in which energy is consumed. This can sources which may be available to a particular Alongside benchmarking, we carry out an generate significant and realistic savings for client in a particular area.  in-depth interrogation of all available half- a client very quickly.   hourly electricity data and AMR-generated   All our Energy Management Services can electricity and gas data. The accurate As part of the wastage elimination services be run in conjunction with various potential data allows us to precisely profile supply we also identify areas in metering, or funding sources and enhanced capital consumption patterns. other technical aspects to do with the allowances. They can also relate directly to measurement of energy, which can programmes being undertaken under Climate From the benchmarking and interrogation provide significant reductions in measured Change Levy Agreements and in relation to the analysis, we produce reports for our consumption and therefore cost. Carbon Trust. Energy & Carbon Management Limited, Longley House, International Drive, Crawley, West Sussex RH10 6AQ Tel: +44 01293 651218 Email: info@energyandcarbonmanagement.com www.energyandcarbonmanagement.com
  • 13. Energy & Carbon m a n a g e m e n t CARBON MANAGEMENT SERVICES OUR GOAL The carbon market is one of the most rapidly expanding markets in the world. To optimise our clients’ short, medium and long-term energy Businesses are becoming increasingly aware of their obligations to reduce and carbon costs through the their environmental impact, and for larger companies, the management design and implementation of carbon is becoming a feature in corporate responsibility statements. of cost-effective purchasing strategies, volume reduction programmes and full Our Carbon Management Service uses the information collected from legislative compliance. our Data Hub and combines it with our Energy Management Service to effectively measure, monitor and manage each client’s carbon footprint. Access to green energy contracts through our Procurement Service coupled with a sophisticated method of buying Carbon Credits, enhances our clients’ Carbon Management Strategy giving them the ability to deal confidently with future challenges and demonstrate their achievements through strong and meaningful corporate responsibility statements. As the carbon market continues to unfold in the UK, the need to purchase carbon credits within a volatile market has emerged. Combined with our reporting services, we offer a Carbon Credit Procurement Service. Our Core Values In all our client relationships we are committed to being: • Independent of all suppliers so that we can give genuine balanced advice • Expert in the things that we do, so that our clients can rely upon the solutions that we propose • Highly ethical and transparent in our dealings and transactions with suppliers and clients • To underpin these values Energy & Carbon Management subscribes to the Association of Cost Management’s Code of Practice.
  • 14. Carbon Carbon Reduction Commitment Scheme (CRC) Management CRC Calculation Calculation Purchase Strategy Registration of Carbon Footprint of Annual CRC Return of Carbon Credits The volume of carbon for which any organisation is responsible is directly related to the quantity of energy it Registration that clients’ audit reports are produced on time consumes. Our Data Hub provides The registration limits for the Carbon and to the required levels of precision. the backbone of the information that Reduction Commitment are 6 million kWh of is used within all carbon reports. electricity taken through half-hourly settled The resultant calculations of the volume electricity meters by one single organisation. of carbon which is being generated by a Using our Procurement Management The definition of an organisation is complex particular organisation has a direct financial Services, we can specifically tailor but essentially relates to the highest parent implication and can be managed. energy supply contracts to be based business for any group of businesses. on standard energy, part green If half- hourly electricity consumption Through our Energy Management Services energy, or full green energy. Having exceeds the 6 million kWh level, then there programmes, we assist our clients in the right procurement strategy in is a mandatory obligation on behalf of eliminating wastage and therefore, the place can influence certain aspects clients to register with the Carbon Reduction amount of carbon which they report. By of carbon reporting and help to Commitment Scheme and engage with it. actively reducing their energy consumption, strengthen any organisation’s our clients can reduce the amount of carbon corporate responsibility statement. The consequences of non-compliance credits they will need to purchase. are important, as failure to register and Our Energy Management Service, participate or to provide information which Carbon Credit Purchases which is geared to eliminating shows that participation is not necessary, can For qualifying organisations, carbon credits wastage and then reducing energy result in penalties. will need to be purchased by 2012. Initially, volume, is a complementary there will be a regulated price framework but service to our Carbon Management Footprints and when this is deregulated in the medium term, Service. The policies which are Annual Reporting it is estimated that the price of Carbon Credits enacted by Energy Management Carbon Footprint calculation and could triple, from an initial price estimated to Services will have the direct impact subsequent annual reports are detailed be a 10% surcharge on energy bills to a 30% of reducing carbon volumes. audit requirements which need to be surcharge based on late 2011 price levels. For carried out for every phase of the Carbon larger consumers it is essential that a robust Dependant upon the carbon reduction Reduction Commitment. We have all the Carbon Commitment programme is conceived programmes our clients are involved necessary expertise to successfully complete and implemented so as to generate savings, with, the Carbon Management Service annual footprint reports for our clients. both through reduced energy purchases and then produces all the reporting to the reduced amount of Carbon Credits that ensure compliance with the various The audit work is complex and time-consuming will need to be purchased in the future. schemes they are involved with. These and accuracy is absolutely essential. Reports schemes may be purely for in-house must be submitted for the correct periods and As with all Energy & Carbon Management information, related to a Climate by specified deadlines. Failure to do so can programmes, the provision of clean, accurate Change Levy Agreement, a Carbon result in significant penalties being levied. and complete data is absolutely essential to Trust initiative, or for the Carbon Through exploiting the analytical and reporting an effective Carbon Commitment programme, Reduction Commitment Scheme which capacities of Energy & Carbon Management’s linking back once more to the Data Hub which is explained in detail below. technologically advanced Data Hub, we ensure sits at the centre of our business. DATA HUB CARBON REPORTING CARBON ENERGY CARBON CREDIT MANAGEMENT MANAGEMENT SERVICES PROCUREMENT SERVICES PROCUREMENT CORPORATE MANAGEMENT RESPONSIBILITY SERVICES STATEMENT Energy & Carbon Management Limited, Longley House, International Drive, Crawley, West Sussex RH10 6AQ Tel: +44 01293 651218 Email: info@energyandcarbonmanagement.com www.energyandcarbonmanagement.com
  • 15. Energy & Carbon m a n a g e m e n t WATER MANAGEMENT SERVICES OUR GOAL To optimise our clients’ short, The cost of water and sewerage has risen consistently year-on-year medium and long-term energy since the deregulation of the water industry over 20 years ago. and carbon costs through the design and implementation Despite significant attempts to introduce competition into the of cost-effective purchasing strategies, volume reduction water and sewerage industry, there is limited capacity for programmes and full any client to engage with a provider of water or sewerage legislative compliance. services other than their local monopoly supplier. Within that context Energy & Carbon Management has developed a Water Management Service which concentrates on the two fundamental aspects of water and sewerage costs: price and volume. Our Water Management Service has been developed to undertake a constant year-on-year review of the tariff structures which suppliers offer thus ensuring that client prices are minimised. This approach is coupled to an ongoing and continuous review of water volumes geared to eliminating waste and reducing volume. Our analysts review every supply regularly to ensure that savings are sustained and consumption does not increase in the future. Our Core Values In all our client relationships we are committed to being: • Independent of all suppliers so that we can give genuine balanced advice • Expert in the things that we do, so that our clients can rely upon the solutions that we propose • Highly ethical and transparent in our dealings and transactions with suppliers and clients • To underpin these values Energy & Carbon Management subscribes to the Association of Cost Management’s Code of Practice.
  • 16. Tariff Analysis The water industry is fundamentally developed on the basis of available public REDUCING WATER VOLUMES tariffs, as opposed to any kind of private arrangement that can be reached between a user and the water or sewerage provider. Wastage Volume Alternative UK water companies generally publish their tariffs on 1 April each year which apply for elimination Reduction sources/ a 12–month period. Tariffs are becoming Technology disposal increasingly sophisticated and complex and generally cover the following components of methods all charges: Water supply Water meter standing charges Volume ANALYSIS 2 New Technology Foul sewerage removal costs Once our tariff analysis work is complete, Defining opportunities for the introduction of Foul sewerage standing charge we then seek to reduce the volume of water new technologies in order to reduce water Rateable value or area based surface consumed and sewerage disposed. consumption, is a service which we propose water drainage charges to all our clients as there are certain solutions Highway drainage charges Our analysis falls, as it does with our Energy which can be applied to almost all water- Trade effluent charges Management Service, into three categories: using sites. There are also differences in 1 The elimination of wastage requirements and some clients may need Based on the data that we have processed 2 The introduction of new technology in specific technologies applied to gain the through our Data Hub, we carry out order to reduce water volumes maximum reduction in water consumption. in-depth analysis of each client’s situation. 3 Investigation into alternative water Generally, the capital return on water-saving The volumes of water and sewerage which sources or disposal methods. equipment is attractive and clients can expect are currently being purchased are bench- good returns on their investment. marked against all available tariffs. This 1 Wastage Elimination ensures that correct pricing has been Wastage elimination is generally carried 3 Alternative Water Sources applied and shows whether opportunities out through the analysis of volume For those clients who have a demand for exist to generate a financial saving for utilisation and the benchmarking of those non-potable water, there can be significant a client. Energy & Carbon Management measurements against similar properties of scope to look at alternative water sources. then takes over the administration and other clients or of the same client. Here we Energy & Carbon Management is experienced implementation of those savings to ensure are looking to benchmark water against the in carrying out the full survey and project an effective and rapid conclusion. factors driving the consumption level, which management work required to take ideas from can be either the number of people who are the drawing board through to final completion Water tariffs that are available are extensive working in a building, students in a college and commissioning. and complex in nature. An expert and rigorous or the output of a factory where water is an approach is necessary to ensure that costs intrinsic part of the product, for example, As new technologies or new water sources are not only minimised but maintained at the bread or concrete. become available, we bring those to our lowest level from one year to another. clients’ attention on a regular basis. Through Waste can generally be identified quite quickly the use of our Data Hub, we ensure that those As part of the tariff analysis service which from the desktop analysis and we then follow savings which have been realised, through we provide for water and sewerage, we make through with an on-site survey in order to either the elimination of wastage, application sure that all tariffs are reviewed on an annual identify precisely where the wastage has of new technology or the utilisation of basis to ensure that our client is paying the arisen and what needs to be done for savings alternative supply sources are maintained on correct price each year. to be secured. an ongoing basis to the client’s benefit. We also build a profile of how our clients operate and can often identify additional Foul Sewerage & savings, which can be generated from either Trade effluent trade effluent charges, particularly sewerage charges, and meter sizing. We further analyse Incoming Client surface area measurement charges which Water premises are particularly expensive throughout the Surface Water & Midlands and the North of England. Highway drainage Energy & Carbon Management Limited, Longley House, International Drive, Crawley, West Sussex RH10 6AQ Tel: +44 01293 651218 Email: info@energyandcarbonmanagement.com www.energyandcarbonmanagement.com