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 * Home > Insight > Case Studies > Strategic energy trading from Inenco helps
   Halewood avoid £7 million in potential costs


STRATEGIC ENERGY TRADING FROM INENCO HELPS HALEWOOD AVOID £7 MILLION IN
POTENTIAL COSTS





HALEWOOD ARTISANAL SPIRITS ARE ONE OF THE LARGEST UK-BASED INDEPENDENT
DISTILLERS AND DISTRIBUTORS OF ARTISANAL SPIRITS, EXPORTING TO 95 COUNTRIES
ACROSS THE WORLD. THEY ARE THE PRODUCER OF AWARD-WINNING, LEADING SPIRIT BRANDS
SUCH WHITLEY NEILL AND DEAD MAN’S FINGERS.

THE INDUSTRY CHALLENGE

The manufacturing industry is awash with challenges which have been heightened
over the past few years. Food and drink in particular, is one of the largest
manufacturing industries in the UK and one that has been facing unprecedented
pressure when it comes to cost reduction.

It’s reported that increased energy prices affected food and beverage businesses
more than any other, with energy accounting for around 15% of the total costs
for the average food and drink manufacturer. Minimising the impact of record
energy price increases and finding ways to make a business more energy efficient
are vital to remaining competitive, managing cost and protecting ever narrowing
profit margins.

 
 

PROVIDING ENERGY PRICE CERTAINTY AND PROTECTION

For over 20 years Halewood have been working with Inenco across a range of
services, with a particular focus on embedding a robust energy procurement and
trading strategy to help effectively manage energy spend.

Inenco manage over £2.5bn worth of energy spend annually for customers across
the UK. This scale of procurement comes with the benefit of strong supplier
relationships and specialist expertise, as Inenco offer a range of energy
procurement options to suit various organisations and appetites to risk.

Following a thorough risk management and scoping session Halewood opted for a
capped strategy approach, which allows for the maximum commodity price to be set
at the outset of trading. This provides upper price certainty but also offers
the potential to take advantage of downward market movements. This strategy has
provided Halewood with price certainty and protection against rising energy
prices, particularly during the recent market volatility.

Halewood were able to avoid potential energy spends of £7 million through the
specialist trading advice of Inenco. Energy pricing is made up of both commodity
costs (such as crude oil) and non-commodity costs (such as distribution and
taxes). Most recently Halewood have benefited from exceptionally low electricity
pricing with their secured commodity prices being zero. This is due to Inenco
historically setting effective price caps and strategically trading for
Halewood’s forward electricity requirements during lockdown. The market turmoil
at this time forced the benchmark oil price to plummet below zero for the first
time in history.

REDUCING ENERGY CONSUMPTION

The cheapest and greenest kilowatt hour is the one unused. Which is why in
addition to an effective energy procurement strategy, Inenco have supported
Halewood with their energy reduction efforts. Providing robust engineering
support, establishing an energy consumption baseline, and using in-depth
analysis to identify cost and carbon reduction opportunities.

 
 

ENSURING ONLY WHAT IS USED, IS PAID FOR

Halewood also benefit from Inenco’s Invoice Validation service, where skilled
and meticulous analysts make sure that supplier billing errors, duplications,
and overcharges are avoided. This helps to ensure that Halewood have consistency
in their billing and gives them peace of mind that their energy invoicing is
accurate.


 
Procurement
Inenco are energy procurement and energy consultancy specialists. Helping you to
manage the purchasing of anything related to business energy.
Read more >
 
Sustainability
Better Business Greener World Our focus is on helping our customers to deliver a
sustainable future through expertise, insight and innovation. Any journey begins
with understanding where you are starting from –  and so our initial focus is on
establishing an organisation’s current carbon footprint and related
environmental sustainability metrics. Our team of experts can […]
Read more >
 
Bureau
Inenco’s bureau service is dedicated to identifying cost saving opportunities
for our multi-site clients. Our consultants have over 50 years’ experience.
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