Mining, Quarrying, Oil & Gas Extraction – Verallis https://verallis.com Cost Management Experts Tue, 16 Jan 2024 12:48:44 +0000 en-GB hourly 1 https://verallis.com/wp-content/uploads/2021/09/cropped-favicon@100x-32x32.png Mining, Quarrying, Oil & Gas Extraction – Verallis https://verallis.com 32 32 16.67% Savings in Energy https://verallis.com/case-study/1667-savings-in-energy/ Tue, 16 Jan 2024 12:47:45 +0000 http://new.verallis.com/?post_type=portfolio&p=88967
The Result
16.67%
Savings Rate
Total Annual Spend:
€3,000,000
Total Annual Savings:
€500,000
 
ENERGY DESK
ENERGY MOB

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%

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