ArcelorMittal Kent Wire

The Challenge

ArcelorMittal tasked us with helping them:

• Optimise energy non-commodity costs and maximise benefit from energy-related subsidies.
• Minimise energy commodity costs and increase budget visibility and reporting.
• Ensure load capacity is appropriate for future expansion.

The Solution

To inform our approach, our engineering team conducted a site visit, review of processes, and appraisal of energy data, submission, and ongoing subsidy compliance. 

To better understand the company’s budgetary requirements, we held a collaborative discovery workshop. Through this we concluded that adopting a flexible energy supply contract with a risk managed approach to trading would deliver increased budget certainty and lower energy costs for the business.

We also identified opportunities to take advantage of rebates relating to specific non-commodity charges.

We managed the revenue-recovery process from start to finish. This included submitting all the necessary paperwork for both the historic claim and the ongoing rebate. Our compliance team ensured that all evidence was kept up to date and was provided to all of the relevant suppliers and government departments.

Meanwhile, setting a ‘dynamic ceiling’ enabled our trading team to take advantage of market lows for ArcelorMittal, while at the same time protecting the business from any increase in prices. Using our bespoke customer portal, Pulse, enabled ArcelorMittal to track its budgetary goals with trades and market prices updated daily.

As well as providing significant savings over a traditional fixed price contract, this approach allowed us to accurately forecast budgets over a three-year horizon.

The review of ArceloMittal’s current site operations also enabled us to forecast new load demand. Equipped with this insight, we were able to complete the relevant DNO application to facilitate the installation of the necessary infrastructure.

The Benefits

The revenue-recovery exercise resulted in a historic refund of £102,700 and future savings of £178,700.

The business is now more resilient, with financial controls in place to mitigate energy market volatility and real-time access to ongoing three-year electricity and gas budget forecasts.

In addition, the site is now future-proofed and ready for the installation of all new plant, with supply guaranteed and potential penalties avoided.