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Energy contract optimization: cost reduction and avoidable charges

Context and objective

Many companies find themselves locked into energy supply contracts with additional costs and charges that could be reduced through a detailed analysis of contract terms. Often, automatically renewed contracts have room for improvement that, if not analyzed, can result in avoidable costs.

The company requested a review of its energy supply contract, active and renewed for the current year, with the aim of reducing costs and identifying any negotiable charges.

The intervention

The contract analysis and renegotiation included:

1

Review of existing contract conditions

Detailed analysis of the cost structure and charges applied.

2

Identification of avoidable burdens

Identification of tradable costs, including imbalance charges and risk management.

3

Comparison with the best market offers

Evaluation of alternative solutions with more advantageous conditions.

4

Contract renegotiation

Establishment of a new contractual arrangement with reduction of taxable expenditure.

Through careful evaluation of market conditions and focused negotiation, it was possible to obtain a contract revision more favorable to the company.

Results and benefits

The operation has brought concrete economic benefits:

Projected savings of more than €350,000

Through contract renegotiation.

Reduction of 65.5 percent of the annual expenditure taxable amount

with a positive impact on the company’s financial management.

Elimination of avoidable burdens

Optimizing the energy cost structure.

Economic and operational impact

Better management of energy expenditure

More competitive contract and reduction of unnecessary cost items.

Greater financial sustainability

Reducing the burden of energy supply on the corporate budget.

Replicable strategy for future renewals

Ability to apply the analysis model for further contract optimization.

Through a careful review of the energy supply contract, the company has achieved significant cost savings and eliminated avoidable charges. Optimizing contract terms is a key step in reducing energy expenditure and improving business competitiveness in the long term.

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