204

invoices validated

20,000+

data checks

£ 0

overspend recovered

The Client

Clean Linen is a leading industrial laundry service provider operating nationwide across England. With six commercial laundries, they service sectors including hotel linen, food and beverage, and industrial workwear. Clean Linen consumes a significant amount of electricity and gas annually, making energy management of their industrial laundries crucial to their operations. This case study highlights our approach to managing energy for Clean Linen, showcasing how we helped reduce costs and advanced net-zero strategies.  Energy management for Industrial Laundry client

 

The Challenge

Clean Linen faced several critical challenges:

  • Supplier Invoicing Issues: Ongoing discrepancies in gas and power billing resulted in overcharges and financial strain.
  • AMR Metering Challenges: Difficulties with Automated Meter Reading (AMR) systems affected accurate energy monitoring and data management.
  • Market Volatility Exposure: Flexible gas and power contracts exposed Clean Linen to fluctuations in wholesale energy markets.
  • Net Zero Targets: A focus on achieving net-zero emissions necessitated improvements in data management and strategies to avoid energy wastage.

 

The Solution

Equity Energies provided a multifaceted approach to address these challenges:

  • Recovery of Overcharges: Conducted an extensive review of gas supplier invoices, challenging discrepancies over a 12-month period. Successfully recovered £60,000 in overspend by building a factual case and reversing a final decision from the supplier, supported by meticulous bill validation and budgeting data.
  • AMR Support: Liaised with third-party metering agents and managed supplier relationships to resolve AMR metering challenges, ensuring accurate and reliable energy data.
  • Market Insight and Risk Management: Delivered daily market reports and in-depth analyses on current prices, hedging strategies, and market conditions. Bi-monthly meetings with Equity Energies’ Head of Trading provided real-time data and strategic advice, helping Clean Linen navigate market volatility.
  • Net Zero Pathway Development: Collaborated with Clean Linen to develop a comprehensive net-zero pathway, focusing on carbon reduction strategies and improved data management to prevent energy wastage.
  • Tendering and Procurement: Operated open market tenders for both electricity and gas supplies, presenting comprehensive summaries of tender results. These included detailed comparisons of commodity and non-commodity costs, supplier conditions, and market risks, enabling informed decision-making.

Image of a industrial laundry

“Equity Energies has assisted us in numerous tenders for utilities by going out to market with our requirements, needs, and expectations…”

Robert Morris, Head of Procurement at Clean Linen

Innovation

  • Persistent Supplier Negotiation: Demonstrated unwavering commitment by challenging the gas supplier over nearly a year, utilizing factual evidence to recover significant funds.
  • Customised Reporting: Provided clear and concise reports tailored to Clean Linen’s needs, enhancing transparency and supporting strategic decisions.
  • Proactive Market Monitoring: Alerted Clean Linen to sudden market changes that presented opportunities or risks, enabling timely adjustments to their hedging strategy.

 

The Results

  • Financial Recovery: Successfully reclaimed £60,000 in overcharges from the gas supplier.
  • Improved Energy Monitoring: Resolved AMR metering issues, leading to more accurate energy consumption data.
  • Effective Risk Management: Mitigated exposure to market volatility through strategic hedging and informed decision-making.
  • Progress Towards Net Zero: Advanced Clean Linen’s journey towards net-zero emissions with a tailored pathway and improved energy efficiency.
  • Enhanced Procurement Processes: Achieved cost savings and favorable terms through competitive tendering and supplier negotiations.

Energy management for Industrial Laundry client

Testimonial

“Equity Energies has assisted us in numerous tenders for utilities by going out to market with our requirements, needs, and expectations. They present comprehensive summaries of tender results, giving clear comparisons between current rates and supplier proposals. The summaries are broken down by all unit costs for both commodity and non-commodity costs and cover any special conditions set by suppliers. This provides clear and concise documentation for informed decision-making based on market conditions, risk, and sustainable options. Equity has a good pool of suppliers to tender from and covers all aspects of the clients’ requirements.

Equity provides daily in-depth reports on current market prices and how our hedging strategy is performing. The reports are clear and give the position for the full length of the current contract. Additionally, they offer comprehensive summaries of cost drivers, market conditions, risks, and global influences, which support decision-making and managing future exposure. Hedging is conducted with bi-monthly meetings directed by Equity’s Head of Trading, where real-time data and market insights are explained. Any sudden market changes that present opportunities or risks are promptly alerted to us, allowing changes to our strategy.”

Robert Morris, Head of Procurement at Clean Linen