Project Description

Radiant Energy reduces energy costs for hotels and motels

RADIANT ENERGY PRODUCES SAVINGS FOR HOTEL BUSINESS

When conducting utility bill auditing for a hotel business, Radiant Energy discovered a costly billing error. By catching and resolving this single mistake, Radiant Energy provided hotel energy savings and saved the hotel more than $26,000.

Intensive Data Collection and Market Intelligence Pay Dividends: Energy suppliers are frequently affected by regulatory changes, such as tariff modifications that can impact their underlying costs. When these changes occur and they occur often, suppliers legitimately pass on these cost savings or increases to customers, but they are not obligated to inform customers about any changes. As a result, end-users are rarely aware of changes that may save or cost them money. These small differences can add up, so it is critical to understand any regulatory changes as well as to track and review energy data to ensure invoices are accurate and reasonable.

SITUATION

This hotel company is a Radiant Energy client with operations throughout the region. In one area where the company has an operating location, tariff changes had gone into effect, decreasing costs for the company’s energy supplier. The supplier didn’t pass on the savings to its customers.

In reviewing the many components of its client’s invoices to ensure billing accuracy, Radiant realized that the supplier had not lowered its prices, even though the tariff change had reduced the supplier’s costs. Radiant pursued the matter to have the reduced rate passed on to the hotel.

LEADERSHIP

Upon contacting the supplier, Radiant stated that the supplier’s lower costs should flow through to its client. Shortly after, Radiant negotiated a credit to the hotel’s account for overcharges that had accrued since the tariff change went into effect immediately.

In learning about what Radiant had accomplished, a senior purchasing manager at the hotel said, “Thank you for catching something we would have never otherwise found. We would like to research other areas of opportunity for savings with Radiant Energy.”

RESULTS

Radiant Energy’s attention to detail resulted in a $26,000 credit to its client’s account. However, the hotel energy savings did not stop there. Radiant Energy went on to help the hotel find other areas of hotel energy savings opportunities and collected an additional $52,000 in hotel energy savings.