Project Description

Radiant Energy provides energy savings and solutions for commercial real estate companies

Learn how Radiant Energy saved nearly $300,000 for a global commercial real estate company by exploring energy procurement options beyond the incumbent supplier options.

Weighing Supply Options Keeps Energy Costs Down: When it comes to purchasing energy, many businesses rely on established relationships with incumbent suppliers rather than looking for untapped value from other sources. Some companies will try to conduct their own “bid process” but still can’t reap the benefits from what an expert energy management company provides. Yet, in order to avoid “relationship bias,” companies should seek strategic energy counsel before renewing agreements and strive to get the energy services they need for the best possible price.

SITUATION

One of the world’s largest providers of commercial real estate services was in the midst of renewing a contract with a new energy supplier in one of its markets. While the company was prepared to accept the contract, Radiant Energy stepped in to ensure the new agreement represented the best value on the market.

LEADERSHIP

Upon reviewing the client’s energy contract, Radiant Energy recommended the large commercial real estate company request proposals from additional suppliers and with significantly more requests. Radiant also requested multiple product offerings from all of the competing suppliers, so the company could spread its risk across both fixed and spot market rates. The fixed rate portion would enable the company to know exactly how much to budget for, while the spot market portion would let them take advantage of savings on market dips.

Nine eligible energy suppliers provided pricing for both fixed and flexible products for two years. A thorough analysis of the bids demonstrated that simply renewing with the initial supplier the company chose was not the best option. Radiant recommended that the commercial real estate company not only engage with a new supplier, but also secure contract terms better aligned with the company’s usage patterns.

RESULTS

The commercial real estate services company saved $300,000 as a result of Radiant Energy’s recommendation to open up the renewal for competition and better clarification of the client’s needs. Upon implementing the new agreement, Radiant continued to manage the company’s open market exposure, proactively monitoring the market for optimal pricing opportunities for the remainder of the agreement and beyond the term.