Budgeting

Let’s make energy and utility budgeting simple again

In the past, energy and utility budgeting was a simple affair – increase last year’s annual cost by some agreed percentage and job done.

For many years, this simple (albeit inexact) approach yielded results that satisfied most businesses’ requirements. However, market deregulation in the 1990s and ever-rising price volatility have rendered this approach obsolete. In short, close enough is no longer good enough. In recent years, sourcing and risk management strategies have become more sophisticated, so this must also be reflected in businesses’ budgeting and tracking processes.

From budgeting accuracy to utility cost control

Accurate utility budgeting and forecasting requires you to consider different options based on your individual requirements, such as energy use, future growth plans and budgetary demands. To help businesses meet this substantial challenge, we provide you with a Budgeting and Monitoring & Targeting service.

We start the process by tracking your energy and water consumption. We review your organisation’s past consumption levels and make operational and non-operational adjustments. We then build up a consumption profile from your invoice validation for budget preparation. We create a projection based on the market conditions with a benchmark analysis of your industry.

We construct a site-by-site and cost-by-cost forecast of your organisation’s total annual bills. We apply the projected consumption to your tariffs and contracted costs, and other applicable non-energy charges, adjusting them with recorded modifications. Nowadays, only 41% of your electricity cost is directly commodity/energy or water consumption-based charges.

Utility cost control
Reduce your bills to re-allocate budgets

Reduce your bills to re-allocate budgets

Once we have constructed your annual budget, we track each your site’s progress on a month-by-month basis and highlight any variances against the set budget, identifying the source of difference: consumption, unit price or non-energy cost component.

We further enhance the ESS Budgeting service with our Smart Metering, Energy Management, Monitoring & Tracking and Procurement services.

When you require a more bespoke service, your dedicated ESS account manager will be on-hand to help in any way possible.

What if time is critical to you?

If you find that time is critical for you and your organisation, we can manage this system on your behalf and provide comprehensive reports for you. We tailor the reports as per your business, department, ledger code, location, utility type, invoicing and accrual schedule, financial planning and asset management needs.

Supplier and query management

We manage all queries between the energy/water/waste management suppliers and your organisation to a full resolution, with as little involvement from you as possible. We sort out debt and credit management on your accounts, billing consolidation for more savings, payment allocations, contract transfers, etc.

We provide comprehensive administrative services reducing the complexity and time spent managing your utilities, leaving you free to focus on the day-to-day running of your organisation.

VAT and CCL Exceptions

We save money on your business energy bills if you are eligible for VAT exemption. Some businesses are eligible to pay VAT at a reduced rate of 5%. If you manage residential properties such as care homes, student accommodation, charity space, free schools/academy, caravan parks, or your businesses is using less than 4,397 kWh/month of gas or 1,000 kWh/month of electricity, talk to us.

If you qualify for a VAT reduction, it is likely your business also stands to be exempt from the main Climate Change Levy (CCL) rate. CCL encourages energy efficiency and urges reduced gas emissions for businesses.

Compliance

We can manage your compliance with carbon and energy legislation. Our consultants use their expertise and connections with external industry-leading partners to achieve compliance, for example with ESOS and DECs.

CCA: Climate Change Agreements are meant for energy-intensive industry sectors. Businesses are incentivised to reduce their energy consumption for a discounted rate of CCL.

Reporting for budgeting and planning

Why are energy and utility reports important

According to a report from the International Energy Agency (IEA), “Energy efficiency is the world’s most important ‘fuel’”. But to become energy, water and waste efficient, you need know what you consume, why and where. In other words, you need to know your cost-consumption-CO2 profile and the costs connected to it.

We provide you with simple yet effective reports on your water, gas and electricity usage for energy efficiency, reduction of carbon output, and overall Energy Management within your organisation.

Access all your organisation’s reports, analyses and scanned invoices conveniently on the Customer Zone.

Customer zone web portal

We provide our clients with an easy-to-use online reporting portal, which is available to you 24/7.

Our ‘Customer Zone’ portal securely hosts your utility consumption and cost data, alongside daily market reports and insights. You can select which data columns to display and export reports as images and PDFs, and in Excel and CSV format.

You get password-protected access our online portal, Customer Zone, for your specific budgeting reports. Our informative reports for asset management, procurement and cost control enable you to understand spend on energy, water and waste. You can plan and budget more efficiently and assess your expenditure in real-time.

Our reporting portal provides informative energy and utility reports for asset management, cost control, and financial budgeting. You will better understand your expenditure on gas, electricity and water. As part of our regular online reports, we produce an accruals report so you know your monthly budget position.

Regular payment reports to your own system with scheme codes
Our commercial clients use a wide range of accounting software (SUN, SAP, Oracle, etc). We can integrate our reports with your system and then automatically send regular payment reports to your finance team. Our payment system integration option saves you time which you can then spend on customising reports for different departments and managers.

Contact us for a free consultation and find out how we can help you