Cost Reduction Services Ltd, press releases

Article for Coutts & Co - Spring 2009

Challenging times
The article below, written for us by Paul Fisher from Cost Reduction Services, gives some thoughts about managing energy costs. I know you will all be looking carefully at costs and so hope this gives you food for thought.

Nigel Dickinson
Head of Education Sector

MANAGING ENERGY COSTS
The UK energy market has changed dramatically over the past few years and is now fully privatised and so, more competitive. It is worth setting out the categories of players in this industry so that you know exactly who does what. These are:

Suppliers - the companies who supply and sell electricity and gas. From a customer perspective, the suppliers are the most important group as they represent the real contact the customer will have with the energy industry.

Distributors - the distribution companies are responsible for getting the energy to you. This means that they are responsible for the pipes or cables in the road and the meters within your property. The suppliers effectively have contracts with the distributors to provide these services and all of these costs are already included in whatever price the supplier asks you to pay.

Generators - just as the name suggests, the generators are responsible for generating the energy we use in our homes and businesses. At one time in the UK the major generators were all burning massive amounts of coal to generate electricity. Over the years the predominance of coal has declined in favour of more environmentally-friendly methods of generating energy.

The industry is dominated by a small number of large energy companies, many originating in the electricity or gas industries, whilst others are marketing organisations with no history of direct involvement in this sector. Some of these major players are subsidiaries of very large European companies. Electricity and gas suppliers are now considered to be energy companies rather than suppliers of one fuel or the other.

Climate change is a major issue for the energy sector as it faces the challenge of generating power with reduced carbon emissions. This factor is stimulating the development of renewable energy and interest in nuclear power.

We know that reducing everyday costs is a constant battle for all schools and in these difficult times, the cost of salaries, catering and other areas will occupy the mind of nearly every bursar. However, the amount paid for your energy should not go unquestioned. Reducing energy bills can be a significant and painless source of saving and there are a number of areas where savings can be made, such as checking for overcharging, identifying patterns of usage, and comparing offers from current and alternative suppliers.

As mentioned, changes in the industry have led to greater competition. As a result, users may not be aware of the potential savings in time and money that can be achieved. Effective utility management depends on the ability to identify, interpret, and handle technical data combined with market knowledge in terms of prices, suppliers and available contract terms. Many schools do not have the skills, resources, knowledge and, above all, the time to undertake such an audit. With numerous utility suppliers in the UK, it is virtually impossible for a customer to keep track of prices, especially with those prices driven by the price of oil that changes constantly. This means that schools never know if they are being charged fairly or where to go for a more competitive price. By getting the right professional help, significant savings on money and time spent
sourcing competitive proposals can be made, with no reduction in the quality of service. All of this helps schools’ cash flow and can significantly free up time for the bursar to concentrate on other areas. No school can afford to ignore utility cost management.

Paul Fisher
Cost Reduction Services Ltd

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EVENING STANDARD MONDAY, 29 APRIL, 1996

A new ally in the war on waste

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Financial and Legal Service Feature on page 37 of the Directory of Members 1997.

"This article was written with the co-operation of: Chantrey Vellacott, a top 20 firm of Chartered Accountants. Eversheds, a city and national law firm. Cost Reduction Services Limited, a cost management consultancy."

"Meet the professionals - getting the best advice for your business. In this article, we look at the professional services available which can help you make a crucial difference to your business's fortunes. Reducing everyday costs is a constant battle for businesses large and small. Whilst the cost of rent, salaries and office equipment may occupy the mind of nearly every manager and finance officer, the amount paid for telephone, electricity, gas and water often goes unquestioned."

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"In times of belt-tightening, other overheads, including staff costs, are more often candidates for attention than utility bills. Reducing the costs of these can be a significant and painless source of saving. However, many firms seem to be still pouring money down the drain - literally! Paul Fisher, Managing Director of Cost Reduction Services, a Putney-based consultancy specialising in utility cost management, estimated over 80 per cent of firms pay more than they should on these basic services."

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"It is ironic that companies seek the keenest price possible from other suppliers and yet do not consider that they could be paying less on telephone, water, electricity and gas bills. This is partly because they are not aware of the potential savings made available by recent market changes, new technology and new sources of supply."

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"Many companies don't have the skills, resources or knowledge and above all, the time to undertake such an audit. Effective utility management depends on the ability to identify, interpret, and handle technical data combined with market knowledge in terms of prices, suppliers and available contract terms. With over 70 gas suppliers in the UK, it is impossible for a customer to keep track of prices. This means that firms never know if they are being charged the right price or where to go for a more competitive price. "

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"By getting professional help, significant savings can be made with no reduction in the quality of service. All of this helps a company's cashflow and profitability. The service offered by CRS work is primarily based on results i.e. 'No Savings - No Fee'. On signing an agreement, CRS will review all telephone and utility bills of the company and where savings are identified and implemented, share equally in those savings with the client."

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"CRS works with a wide variety of businesses and regularly achieves savings of between 20-30 per cent for them. It was recently able to reduce the gas bill of one London restaurant by over 40 per cent or nearly £1,300. It also helped a firm of solicitors reduce their water bill by 30 per cent."

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"A little time spent on this can stop a company literally pouring money down the drain! By turning to experts such as ourselves, companies can achieve real and lasting savings. Utility management is something no profit-minded business can afford to ignore."

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