PES Saves RM Education £240,000 Annually by Optimising TCR

Background & Challenges

RM Education is a leading provider of technology, digital resources, and services to the education sector, operating across multiple sites in the UK and globally. Like many large-scale organisations, RM education was facing rising energy costs, making energy management a key concern for the procurement team led by their Global Procurement Director.

In an effort to optimise energy consumption and reduce costs, RM Education engaged us to handle their energy strategy and provide ongoing support.

RM Education’s energy bills were higher than expected, despite internal efforts to optimise energy usage. The key issue revolved around their Targeted Charing Review (TCR) banding, which significantly impacted the non-commodity costs of their energy bills. Additionally, the company suspected they were being overcharged based on an inaccurate banding assessment, but the complexity of the issue made it difficult to challenge without expert support.

Client Overview

Company Name:

RM Education
Industry:

Education Technology and Resources
Key Contact:

Global Procurement Director
Location:

United Kingdom

Action

Professional Energy Services undertook a comprehensive review of RM Education’s energy contracts, including a detailed assessment of their TC banding. Their team quickly identified that RM Education has been placed in an incorrect TCR banding, leading to disproportionately high non-commodity charges.

Professional Energy Services Approached the solution in two phases:

1. TCR Banding Review and Optimisation:

The team examined the criteria for TCR banding and discovered that RM Education was misclassified, resulting in overcharges. By gathering the necessary data and understanding the client’s consumption patterns, Professional Energy Services successfully requested a reclassification to a more appropriate TCR banding.

2. Disputing the Charges with Energy Distributor:

Professional Energy Services initiated a dispute with the Energy Distributor on behalf of RM Education. Leveraging their extensive experience and in-depth knowledge of energy regulations, they challenged the initial banding decision and presented a strong case for adjustment. This required constant dialogue with the distributor, accurate documentation, and a well-supported argument demonstrating that RM Education was entitled to lower charges.

Results

Thanks to the proactive intervention and expertise of Professional Energy Services, RM Education’s TCR banding was reclassified to the correct category.

This adjustment resulted in immediate and significant savings.

Annual Savings:

RM Education saved an impressive £240,000 per annum on their energy bills due to the corrected TCR banding and disputed charges

No Additional Fees:

Notably, this substantial saving was achieved without any additional fees or charges from Professional Energy Services. The dispute and reclassification work was provided as part of their standard service offering to RM Education.

Ongoing Support:

In addition to the financial savings, RM Education continues to benefit from ongoing support and energy management services from Professional Energy Services, ensuring future energy cost optimisations and compliance with regulatory changes.

“We were facing rising energy costs and were unsure how to control them. The team at Professional Energy Services stepped in, identified the problem, and took swift action. Their expertise in navigating the complexities of TCR banding and dealing with the energy distributor was impressive, and the fact that this service came without any additional costs made it even better. The £240,000 we now save annual makes a huge difference to our operations. I highly recommend Professional Energy Services for their professionalism, transparency, and effectiveness”

Simon, Global Procurement Director at RM Education.

This case exemplifies the value of having an expert energy management partner like Professional Energy Services.

By identifying errors in RM Education’s TCR banding and successfully disputing the charges with the Energy Distributor, we delivered significant financial savings without any added fees.

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