by Jonathan Gardiner | Dec 2, 2014 | Waste
Earlier this year Tamaki College’s executive officer, Neil McEnteer had no hesitation in handing over the school’s waste contract to Total Utilities for review. Since his first dealings with the utilities experts in 2012, Neil had seen the college benefit from significant savings across electricity, gas and telecoms bills. He remembers being quietly confident of another good result.
“In a sector where budgets are very tight, it is important keep costs to a minimum,” said Neil. “Every dollar we save is a dollar more we can spend on teaching and learning.
“Unless you are proactive, completely up to date with market information and have read all the fine print, it’s difficult to be sure that you’ve secured the best utilities contracts. Working with Total Utilities has shown us just what can be achieved when you bring in the experts.”
In 2012 Total Utilities cut the college spend on electricity by 12% and then by a further 13% through an early renegotiation in 2014. Acting on their advice, Neil moved the college’s gas supply contract to a new retailer in 2012, reducing annual costs by 13%. To complete the trifecta, Total Utilities renegotiated the school’s telecoms contract at the beginning of 2014, resulting in an overall saving of 29%.
“While we were discussing one of the other contract renewals, I asked for advice on our waste spend. Without realising it, we had allowed our contract to automatically roll over for two consecutive three-year terms. Jonathan Gardiner from Total Utilities took one look at the figures and said we could do way better on the price.”
Waste contracts almost always require 90 days’ notice prior to the renewal date if the customer wants to review pricing. If this opportunity passes, the pricing and contract terms automatically roll over for another three years. (more…)
by RichardGardiner | Aug 4, 2014 | Energy
Schools pay less for power by going to the market in bulk tenders which attract contract offers from multiple power suppliers. In the first six months of this year, Total Utilities has helped a group of seventeen schools save more than $350,000 on their renegotiated power contracts. This represents an average saving of almost $14,500 or 18% per school.
The bulk tender process was managed by procurement specialists, Total Utilities. All the school business managers had to do was supply details of their previous contract and weigh up the offers when they came in.
New Plymouth Girls High School was one of the participating schools and business manager Tony Pugh is delighted with the result. “This is our third contract negotiation with Total Utilities and we’ve saved money every time,” Tony explained. “This year we cut our power costs by 24% by getting more suppliers interested in quoting for our business and making the most of favourable contract terms.”
In the past Tony has had difficulties attracting such a wide range of offers. “It’s important to present the information to suppliers using the right language in order to get the best result – it can be very time-consuming to manage the process. Total Utilities was able to present us with eight offers from different suppliers, lay them out on a single page and recommend the best contract to us – based on dollars and contract terms.” (more…)
by Jonathan Gardiner | Sep 23, 2013 | Waste
The way that Aucklanders pay for their waste water is set to change from June 2014. This will impact on the financial reality for many schools and businesses over the next four years.
Getting in and being proactive about these changes will allow organisations to manage their water budget better during the transitional period between now and June 2016, advised Jonathan Woodbridge Buys, Energy and Environment Technology Associate at Total Utilities.
Why are water tariffs changing?
The unification of Auckland brought together seven local councils and their water services, with many differing tariffs for water usage into one clear structure.
Auckland SuperCity water provider, WaterCare, has introduced a single clear fee structure for the whole of Auckland for regular water services. This four-tiered fee structure will consist of three parts: two are based on the measured volume of fresh water used and the assessed volume of waste water returned to treatment, and the third part is a service levy.
The charge for fresh water is a straightforward fixed fee across all four tariff plans. Usage will put into bands: low, moderate, high and industrial, based on the volume of water used. The cost per litre of waste water returned to treatment will vary according to usage volumes and an assessed portion is rebated.
How will waste water tariffs be calculated?
The waste water percentage calculation is more complex. Organisations in the North Shore and Waitakere are used to paying a high flat fee for water management and will have no historical assessment of the percentage of their water that ends up in the sewer. In these cases, WaterCare will audit water usage in order to establish the percentage waste water charge. (more…)
by RichardGardiner | Feb 20, 2012 | Energy, Waste
At a time when every sector in New Zealand is feeling the pinch, 102 schools across New Zealand have found a way of making their money go further.
Part of the solution for a large number of primary, intermediate and high school business managers has been to bring in specialist services to negotiate their power, gas and waste services contracts to make sure that their schools are not paying over the odds.
According to school business managers, bringing in third parties makes sense on a number of levels. Having to deal with a wide range of different tasks is one of the challenges managers face on a daily basis, this makes it impossible to be an expert across the board. Buying in expertise and handing over the more specialist jobs seems to be a logical step.
Business Manager at Pakuranga College, Graeme Brown is an advocate of this approach. “Over the 11 years that I’ve been in this job, I’ve come to realise that it makes sense to leave utilities contract negotiation to the experts. I don’t even think about our contracts now, TUMG notify us when they are due for renewal – it’s great to have something taken off my list of priorities.”
The opportunity to join forces with other schools and go out to market in bulk tenders is another plus point for bringing in a specialist. Richard Gardiner at Total Utilities Management Group (TUMG) has been putting together power, gas and waste services bulk tenders for ten years and sees them bringing real advantage to his clients.
“When we put out a bulk Request for Proposal to suppliers, the bigger the piece of business, the sharper the pricing tends to be.”
But Mr Gardiner is quick to stress that it’s not all about the price. (more…)
