Bupa saves $1.2M in energy costs with Procurement and Utility Management Cost initiatives
Bupa is a leading operator of residential aged care facilities and health care internationally. In Australia and New Zealand, Bupa is one of the largest providers of residential aged care and health care to help people live longer, healthier, happier lives.
Electricity is a major spend across Bupa’s portfolio with an estimated 316 sites and a total energy spend of approximately $6m per annum. There is an estimated 107 current suppliers, 70 of these are embedded network providers.
To improve data capture, bill checking, energy procurement and reporting, Ecosave is delivering an Energy Procurement strategy together with an ongoing Utility Management Service.
The first step in this process was to conduct a large site tender to reduce the number of suppliers and improve data collection procedures. This is followed by a small sites tender process. This initial procurement process realised savings of $800k, including $500k from the repeal of the Carbon Tax.
Savings from the procurement initiatives are due to start from November 2014 and include;
- $690,000 in large site electricity costs ($500k is due to the carbon repeal
- $100,000 in small site electricity and natural gas
- $10,000 per annum in metering costs and improvements in access to date
Utility Management Savings
The focus of our Utility Management services are to provide savings by checking the usage, rates and tariffs on each energy bill. This checking process realised $432k in savings in only 5 months! The following summarises the savings.
|Savings||Savings in 2014 ($)|
|Identified 12 sites on incorrect tariffs|
|Negotiated for late fees to be dropped with new short term contract|
|Negotiated short term contracts to avoid default rates|
|Total to date|
Ecosave’s Utility Management services deliver many benefits to our clients, from cost savings, to access to real time energy management data.
We utilise the energy data we collate on the clients behalf to provide as many benefits as possible, including;
- Bill Processing
- Bill Validation
- Contract and Market Advice
At Bupa we believe that we can enable people to make positive changes to improve their health and protect our environment. Partnering with Ecosave means we are on our way to achieving these targets.