The education sector overspends on energy by as much as £173 million per year, due to inefficient technology, equipment and controls (an analysis by Siemens’ Energy Efficiency Financing (EEF) scheme).
Money that should have been spent on education and wages.
Many schools overspend on energy bills simply because they don’t understand their contracts, causing them to overpay. This particularly occurs when they move to default rates following contract expiration. Such rates are usually much higher — sometimes up to 50% more expensive.
When it comes to renewal, all bills should be put out to tender to gather as many quotes as possible in order to identify the best value for money. Often the renewal price of an existing contract at the end of the term is significantly higher than those that can be found by shopping around.
By monitoring energy prices throughout the term of an agreement, institutions can also renew contracts early, even two years before the expiration if a new price is particularly attractive. Institutions that wait until the end of their contracts are forced to take the best available rate at that time, which might not be as good as rates in the previous months.
When schools don’t have the time or the expertise to manage their own utility costs in-house, an independent consultant should be considered to research the market, source, negotiate and procure the best value for money.
A consultant should also create an asset register to monitor all utilities expenditure across multiple sites. This will help keep track of all contracts and invoices, and identify when they need to be renewed. It’s highly crucial to check each invoice with ongoing bill validation to ensure it’s accurate and for the agreed amount.
With historical cost analysis and reconciliation, a school can also claim refunds that date back as far as six years. It’s important to note that an established, industry-recognised consultant does not take commission from supplier for historical refund recovery.
To date, we have gained more than £110 million in savings and refunds for our customers.
We advise a large number of schools, colleges and universities on their energy/water consumption and cost reductions.
RECOVER AND SAVE:
• Historical audit for refunds from six years
• Ongoing validation of all energy invoices and charges
• Water audit and validation
• Contract renewals when the time and price are right
ACCURACY AND EFFICIENCY:
• Up-to-date asset register and consumption profile
• Financial reports and budget forecasts
• Smart meter sourcing and installation management
Pay only for what you actually use
We validate a total of 3 million invoices annually and 250,000 monthly.
Over time we have determined that nearly 20% of all utility invoices contain at least one error. We identify if you have been overcharged in the past and whether your current invoices are correct. We keep your budget in control and portfolio accurate.
We manage energy and water contracts of our customers at market-beating prices. We reduce your costs with our Efficient Cost Management with accurate billing and budgeting and planning reports.
With our Smart Asset Management, you gain an accurate database of your energy and water assets and up-to-date consumption profile. We manage your site/meter, contract and supplier data - making sure your portfolio contains only what you are responsible for. Our online reporting system, Customer Zone, allows you to monitor expenditure in real-time, 24/7. With our Intelligent Procurement you guarantee the best contract prices.
Our success factors stem from 30-year experience, dedicated personal service, high-quality work for each customer, and continuous demonstration of concrete value for money and accountability.
CUSTOMER CASE: Monarch was hired by Magdalen College School in Oxford. We found the organisation had been overcharged for gas consumption due to new meter installations, and removal of old ones in connection with the refurbishments at the school. After a thorough investigation, data analysis and historical cost reconciliation, a backdated refund was secured from the supplier for over £5,000. Past and ongoing contracts were then renegotiated with a reduced rate and all future invoices put under continuous bill validation, which resulted in an estimated annual saving of £46,460, and I total of £101,190 across the 29-month contract.