Case Study – Faraday Property Management Reduced Energy Costs

Energy turns the wheels of business, and in the UK, much like other countries suffering from an energy crisis, it’s not just households struggling with the rising costs of energy bills.

Additionally, many organisations are paying more than the market rates due to long-term contracts.

The outcome for many is energy and utility costs continue to constrict the budgets of businesses across the UK, with 30% of small companies deemed to be at heightened risk’ of being unable to absorb energy price shocks as the Energy Price Guarantee ended in June.

However, it’s not all doom and gloom. The bills of London-based property management company Faraday were dramatically lowered when their energy consultants, Advantage Utilities, recommended that they switch their gas contract from a fixed price contract to a flexible arrangement.

Below is a press release on this case study, which details exactly how these savings were made. It’s a worthwhile read for organisations needing to rethink how to reduce their energy bills.

Case Study Presented In A Press Release

“The devil is in the detail.”

Faraday Property Management Ltd. save over £340,000 on energy costs

When faced with soaring energy bills, London-based property management and building surveyors Faraday Property Management Limited (“Faraday”) were able to save over £340,000 on their energy costs over twelve months.

At the beginning of this year, 30% of small businesses across the UK were deemed to be at heightened risk’ of being unable to absorb energy price shocks once the current Energy Price Guarantee ended in June. Though energy prices have since fallen and Ofcom’s energy price cap is in place, many businesses have already struggled to keep afloat.

In 2022-23, occupiers of offices in the UK paid, on average, 22.5% of their total service charge just on their utility bills, indicating the energy crisis has particularly impacted them.

Faraday Property Management has a portfolio of residential apartment blocks throughout London. The portfolio’s bills were dramatically lowered when their energy consultants, Advantage Utilities, recommended switching their gas contract from a fixed price contract to a flexible one.

Having signed a twelve-month flexible purchasing contract, Faraday saved an astonishing £300,000 by taking Advantage of dips in the market. In contrast, a fixed-price contract would have proven far more costly for the business.

Advantage Utilities calculated that the annual cost of Faraday’s bills would have been over £623,800 had they not switched to a flexible purchasing contract. Still, they instead paid just over £283,300 thanks to varying fixed unit rates of energy over the

The Operations Director at Faraday Property Management commented on their energy savings, stating:

“During these turbulent times, it has been a great relief to many of our clients that Advantage has been there to guide them through some very tricky situations. Focused on providing the best options available and always able to support the clients and agents with clear, up-to-date information to support the decision-making process.”

Janey Brockwell, Head of Property Management at Advantage Utilities, managed and oversaw her company’s services provided to Faraday. Janey said:

“I’m delighted that we’ve been able to make such significant savings for the Faraday team over the last twelve months. As a long-standing client, we’ve never stopped looking at how they can best minimise their energy costs and excess energy expenditure. When it comes to these energy savings, the devil is in the detail, and what we’ve managed to do is take full Advantage of variable flexible fixed unit rates each month, which have saved them over £300,000.”

“Other businesses facing similar challenges should seek specialist advice to ensure that they aren’t paying over the odds for their energy during a volatile market,” adds Janey.

For more information on this project, visit the Advantage Utilities website.

ENDS

Final Thoughts

Reducing energy bills for businesses in the UK involves implementing a combination of energy-efficient practices and technologies.

By adopting a holistic approach and combining several of these strategies, businesses in the UK can effectively reduce their energy bills while contributing to sustainability goals.

Additionally, businesses of all sizes need the support of reputable energy and sustainability consultancies.