16.67% Savings in Energy
The Client
Leader in Mining, Quarrying, Oil & Gas Extraction Industry.
IndustryMining, Quarrying, Oil & Gas ExtractionServicesExpense ReductionCategoryEnergy
The Result
16.67%
Savings Rate
Total Annual Spend:
€3,000,000
Total Annual Savings:
€500,000
The Challenge
1
In Mining, Quarrying, Oil & Gas Extraction Sector, the energy cost represents a significant portion of expenditures, can determine industrial competitiveness and affect the long-term strategy of companies. It is increasingly clear that several key factors influence the price of electricity such as fuels, power plant costs, transmission and distribution system, weather conditions and regulations. The energy cost of the industry, in addition to the electricity price and electricity consumption, also depend to a large extend on the payment terms to the producer/suppliers of energy
The Method
2
The project scope was the pricing adjustment defined initially in the contract along with the payment terms. Payment terms are the most familiar, yet potentially the most costly aspect of a supply agreement. Verallis expert analyst’s through a detailed cost analysis per segment for the last 10 years along with negotiations with the supplier, managed to redefine the contractual terms and reduce the annual energy cost by 16,67%