- Smart Contract Alignment
- Cost Savings
- Forward Planning
Overview
A local multi-sports club approached us at the onset of the UK energy crisis, seeking support with their gas and electricity contracts. As a multi-sports club, they were managing five separate energy meters, each on a different contract term. This lack of alignment made forward planning and cost control extremely difficult—particularly with some meters having fallen out of contract and incurring expensive deemed rates.
The club’s primary objective was to bring coherence and control to their utility procurement strategy while avoiding long-term exposure to volatile market pricing. Although wholesale energy prices had started to rise, the market had not yet peaked, giving us a valuable window to act before conditions worsened.
Challenges
At the time of our initial consultation, the multi-sports club faced a few key challenges:
- Fragmented contract terms across five meters, complicating their ability to manage renewals efficiently.
- Deemed rates on some meters, leading to inflated costs.
- Market uncertainty as the energy crisis began to unfold, creating pressure to act quickly but strategically.
The club was not only looking for cost savings, but also a structure that would allow for better financial and operational planning in the future.
Our Strategy
Our first step was to carry out a thorough review of all five meters, identifying which contracts were out of term and where opportunities existed for immediate savings. We prioritised transitioning the out-of-contract meters onto competitive fixed-term deals, which helped reduce excessive costs in the short term.
However, the core of our strategy focused on contract alignment. We recognised that unifying the contract end dates across all five meters would place the club in a far stronger position for future procurement. This approach would also reduce administrative burden and allow the club to take full advantage of market timing. Due to the market conditions at the time—early in the crisis but already unstable—we recommended relatively short-term solutions. This gave the club pricing protection without locking them into potentially disadvantageous long-term rates.
The Results
In the initial phase, modest savings were achieved by moving the out-of-contract meters onto competitive tariffs. These changes immediately curbed unnecessary spending and provided short-term stability.
More significantly, once we successfully aligned all five contracts to a common renewal date, the club was positioned to act decisively during their next renewal window. By the time that date arrived, we had closely monitored the market and were able to secure substantially better rates across all meters. This alignment allowed for a full-market review and competitive supplier selection, ultimately resulting in significant long-term savings.
The club not only benefited from reduced energy costs but also gained a structured, simplified approach to managing their utilities. With all contracts now aligned and monitored, the club is better prepared for future renewals and budget forecasting.
Our work with the multi-sports club demonstrates the importance of strategic contract alignment—especially during periods of market instability. While immediate savings were achieved on out-of-contract meters, the true value was realised in the second phase of renewals, where a unified approach enabled more impactful negotiations and long-term cost reductions. Through our consultative and forward-thinking approach, the club gained control, clarity, and confidence in their energy strategy—setting them up for smarter procurement decisions in the years to come.
