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Case Study: Careport Group

Annual savings in excess of 40% via a flexible route to energy purchasing and a fully automated utility management service

Background

Operating care homes throughout the United Kingdom, Careport Group provides elderly and adult specialist care services via its Mariposa and Papillon brands. Careport Group also provides a full management and operational service through management contracts for investors and providers looking to take a step back from running their care home.

The National Energy Hub was referred to Careport Group by another care group client after purchasing one of their sites. Prior to discussions with Careport, they had agreed contracts through a broker on an ‘energy only’ contract basis with all non energy costs passed through. 

Careport authorised The National Energy Hub to  review these energy only contracts.

After an initial review we found:

  • Energy only contracts in place for 5 years 
  • Non energy costs passed through at forecast
  • HH Energy only rates from 11p/kWh to 12.9 p/kWh
  • NHH Fixed contracts from 19p/kWh 
  • Gas contract rates from 3.9p/kWh with large standing charges
  • Large hidden commissions included in excess of £350,000 and not disclosed to Careport
  • Energy only contracts increased their overhead by c.60%
  • Multiple suppliers with staggered end dates
  • Managed by a transactional energy broker with no value added services or support

Our Solution

  • A management process breaking the contracts legally as the energy only agreements had been set up in the incorrect company name on behalf of the client. 
  • A purchase within period purchasing arrangement for their energy via The National Energy Hub’s energy buying group
  • Streamlined payment terms with consolidated billing
  • Invoices collected directly from the supplier and validated by The National Energy Hub each month, with discrepancies and invoice disputes resolved prior to payment
  • A New Charges Report sent in csv format to the client accounts team after validation and within 5 days of the bill issue
  • Access to our Multi Award Winning and market leading multi-utility portal to view energy market movement, facilities / site information, budgets, accruals and more 
  • M&T for energy usage and volume tolerance 
  • Carbon reporting for sustainability projects and EPC ratings
Energy Procurement Management

The Results

  • Electricity switched to a new supplier within 3 working days
  • Gas supplies switched within 10 days
  • One supplier nominated per fuel with one common end date
  • Gas rates reduced to 2p/kWh
  • Electricity rates reduced to 13 to 13.9p/kWh
  • Initial savings of 41% on a purchase in advance (PIA) strategy for the first year
  • A further 7% for gas and 4% for electricity of in-contract savings for year two
  • Water procurement savings in excess of 4.8% per annum
  • Management fee reduced from £350,000 to £16,000
  • Energy lifecycle management: from invoice collection and validation to payments 
hello@thenationalenergyhub.co.uk
0330 111 1432