Shopping Centre Saves Over £100,000 Through Smart Utility Management

Sector: Shopping Centres

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Smart Utility Management Saves Shopping Centre Time & Money

How We Helped

We have been working closely with a large shopping centre in the Greater London area and over the last couple of years we have secured significant savings through:

  • Efficient procurement exercises
  • Lucrative strategy for vacant units

Challenges: A large shopping centre in the Greater London area was sold in early 2016... ...a notoriously challenging and often very costly time for utilities Accounts being placed onto expensive ‘out of contract’ rates... ...until new contracts were arranged

Results

Competitive, Efficient Tendering – saved £85,000

On the day the Shopping Centre was sold, we contacted all utility suppliers to update the accounts details, and began to negotiate backdated contracts for the new owners.

Successfully negotiating backdated contracts with both electricity and gas suppliers, savings in excess of £85,000 were achieved for the client over the length of the contract. These savings alone pays for the cost of our fees almost 50 times over!

Market Awareness – saved £12,000

At Clifford Talbot Partnership, we monitor the wholesale energy market on a daily basis. When the shopping centre was sold, the wholesale market was sat at a 9 year low. Uncertainty around Brexit and lack of energy storage meant prices were predicted to increase, as such we recommended a 24 months duration contract, as opposed to the 12 month standard.

The market price increased considerably over the next year, which would have cost the client a further £12,000 if only a 12 month contract had been arranged.

Void Strategy – saved over £5,000

Vacant Units at shopping centres can become a costly and time consuming nuisance if the utility supplies are not dealt with promptly and efficiently.

We worked with the client to arrange a relationship with a single appointed supplier with an offer of a competitive ‘Void product’. Upon a tenant vacating a unit, any electricity/gas supplies serving the unit are transferred over to the appointed supplier, away from expensive Out of Contract rates.

We also dealt with any disputes regarding handover dates and meter readings, which can often result in excessive duplicate charges on invoices and potential supply disconnections if ignored.

Over the last year alone, we have saved the client over £5,000 and countless hours from our void management service.

We saved our client a over £100,000

Further benefits of the Utility Bureau Service

In addition to financial benefits we have achieved for the client, we also deliver value through utility management and expert knowledge in the following areas:

  • Utility Reporting– We send a monthly breakdown of consumption per supply at the shopping centre, providing monthly trends and year on year comparisons. Additional areas for achieving further savings are identified here such as reducing Available Capacity and improving heating controls.
  • Energy Budget Forecast– Using our in depth knowledge of the market, we regularly provide accurate utility budgets for the client. This is a top priority for the shopping centre as service charge regimes are frequently a source of friction between landlord and tenant.

In addition to the above, the client also receives all of the other time savings and efficiencies from outsourcing the management of their utility accounts.

Most importantly, however, the shopping centre management can spend their valuable time on improving relationships with their tenants and the local community while safe in the knowledge their utilities will be well managed and proactively monitored.

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