Smart energy helps automotive supplier boost annual growth by 25%

Baylis Automotive, which employs 60 people at its 65,000 sq ft facility in Smethwick, has won a number of contracts to supply seating and HVAC components for the agricultural sector, taking turnover to £5m.

The company is now targeting further expansion and has joined forces with Control Energy Costs (CEC) to help it manage its energy more efficiently as it looks to increase capacity.

It is an approach that is already reaping dividends, with the firm saving in excess of £25,000 by renegotiating its current supply contract and securing Climate Change Levy (CCL) tax relief for the first time.

“We supply over 172,000 pressings every week and these range from small HVAC nozzles to large heavy-duty side members for coolant systems – all manufactured to the highest possible quality,” explained Raj Desai, managing director of Baylis Automotive.

“This year will see us smash £5m in turnover and, with the increase in work, comes an increase in costs through new machinery and more energy. We don’t have the time to monitor usage or look at ways where we could be more cost effective, so thought we would bring in external specialists.”

He continued: “CEC were introduced to us through a mutual business partner and we were immediately impressed with its transparency and the desire to understand our issues.

“Technical Analyst Rebecca Capon quickly got to the bottom of things and spent a lot of time negotiating a new provider for our electricity needs and explained to us that we could be eligible for financial relief through the Climate Change Levy. We didn’t even know that existed.”

Control Energy Costs, which is one of the UK’s leading specialists in utility management, managed to secure Baylis Automotive a £15,000 refund from CCL and ongoing savings through the new provider could work out to as much as £4,000 per month.

It is also currently in the process of assisting the company with increasing its power supply so its growth and subsequent rise in energy usage doesn’t result in excessive charges.

“A lot of manufacturers in the Black Country are growing and with that growth comes escalating energy costs,” added Capon.

“There’s lot of examples where firms just pay the increase without investigating as it’s seen as a non-core part of their business. This is where we come in. All of our analysts have extensive experience of forensically examining usage, identifying new supply contracts and tapping into any subsidies companies are eligible for.

“So far, we have generated Baylis Automotive over £25,000 in relief and monthly savings and this figure could increase as we look at new energy saving measures the company could introduce.”

Control Energy Costs work with more than 900 retained clients across the UK, with its team of analysts providing an initial, no-obligation audit and then working with the customer to identify existing issues and opportunities to reduce bills, whilst advising on improving future procurement strategies.

Following feedback from clients, the company has recently launched CEC Direct as a transparent, clear and valuable alternative to the majority of energy brokers.

Unlike most competitors, it declares what it will do and its costs in a Service Agreement with the client, removing hidden fees or commission.

Desai concluded: “If I had realised how easy the whole process was I would have got CEC in a lot sooner. As a management team we had very little input and just left Rebecca and her team do what they do best – our next project is to identify peaks of usage and how we can get the most out of the energy we use.”