How We Delivered Manufacturing Energy Savings of £208,000 Per Year by Securing Contracts Early

The Problem

NMC (UK) Ltd is part of a leading international company specialising in synthetic foams. For companies with operations that consume significant amounts of power and gas, managing utility overheads is critical to their UK operations.

Business Sense has managed their energy portfolio since 2018. During Q1 and Q2 of 2021, our tracking of wholesale market trends indicated that energy prices were highly likely to increase significantly over the following 12 months. Without proactive action, NMC faced the prospect of massive, unbudgeted cost increases when their existing contracts eventually expired.

How We Helped Make Savings

Using our market forecasting, we strongly advised the NMC management team to agree to renew their energy contracts 18 months prior to their existing end dates.

In August 2021, the leadership team agreed to this strategy. We immediately went to market and arranged for their upcoming energy contracts to be fully locked in and ready for when their current terms ended.

The Results

• £208,000 saved per year on energy costs (£624,000 forecast over three years)
• New contracts secured 18 months in advance of renewal dates
• Complete protection from the extreme highs of wholesale gas and energy markets
• Long-term budget certainty and stability for their UK operations

By taking a proactive, long-term approach to energy procurement rather than waiting for the traditional renewal window, NMC (UK) Ltd successfully avoided crippling market price hikes and protected its operational profitability.