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How to achieve 17% savings with a energy purchase strategy?
The company sought to optimize its power purchase costs for 2023-2025, amid turbulent changes caused by the energy crisis. Discover how a frozen food manufacturer achieved more than 17% annual savings through an effective electricity purchasing strategy👇
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More than 17% year-on-year savings.
Industry: Frozen food
Country: Poland
Problem:
- Securing stable energy prices in the face of increasing price dynamics in the market.
- Optimize the budget while meeting operational needs.
- Ensure effective management of price hedging from 2023.
Solution:
1. Securing positions:
- Purchase in accordance with the purchasing strategy. Utilize all products in the forward market and spot market with the right proportion.
2. Cost simulation:
- Created an accurate cost model for each month, enabling better budget control and anticipation of expenses.
- Regular monitoring of hedging positions and market indicators.
3. Purchasing strategy:
- Implemented long-term energy purchasing strategy.
- Regular monitoring of the market to respond to changing conditions.
- Implemented tools to monitor purchasing execution.
Results:
1. Savings:
2. Budget stabilization:
3. Risk minimization:
- Implementation of a long-term purchasing strategy has resulted in more than 17% year-on-year savings.
2. Budget stabilization:
- Precise management of energy purchases has helped maintain predictable energy spending.
3. Risk minimization:
- Thanks to the implemented solution, the company has reduced costs and minimized the risk of price increases in future years.
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During the meeting, you will have the opportunity to ask the consultant about key aspects of your procurement strategy, current energy market prices, available tools, PPA market options, guarantees of origin, and other complex issues important to you or your business.
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