Orchard Energy, a unique business consultancy that cuts firms’ energy bills by an average of 50 per cent estimates it has saved over 40 businesses in the north east in excess of £1.2m on energy costs in its first quarter, operating from offices on Newcastle’s Quayside. 

Established in Brighouse, West Yorkshire, seven years ago, Orchard Energy manages clients’ entire gas and electricity processes on an outsourced basis.  Guaranteeing the lowest prices, it also achieves contracts and payment schedules that best suit individual circumstances and creates tailored packages to reduce fuel consumption dramatically.

Although the recession has sharpened interest in cost savings, many businesses are completely in the dark about the options open to them, according to Newcastle office manager, Rory Ingham. 

He said: “Increasingly, energy prices are adding to the business sector's woes, usually representing the biggest or second biggest outlay.  Obviously, cutting usage, getting the best tariff and price security are of paramount importance - especially in a medium-to-long-term future of fuel scarcity and underlying price rises.

“The fact is, though, while companies are allowed to shop around for the best deals - just like domestic customers - most simply don’t do so.  The many reasons for this include firms being unaware of their rights; imagining that any changes will be admin heavy; confusion with the energy companies’ complex price plans and jargon; and nobody having a defined energy saving role.

“With rising demand for Orchard’s services from companies of all sizes, it made sense to have account managers in the North East for an immediate service.

British Engines has benefited from Orchard’s energy management with savings spanning the next two years.  Jonathan Lamb, manufacturing director of BEL- British Engines Ltd commented:  “Orchard Energy has secured BEL a significant saving on our energy costs over a two year period.  Our decision to work with Orchard was easy - they work in a transparent, trustworthy and pro-active way and based in the North East they provide face to face service, responding rapidly to requests. Through their analysis the Orchard team has also identified other energy related costs that can be reduced.”

Rory has been busy raising awareness further among businesses about how they can get the keenest prices, the most suitable terms and expert counseling on energy efficiency.  He added: “There are no other truly independent energy brokers in the region with our expertise, buying power and respected reputation among energy providers.”

One of the first to sign up was Premier Waste, which is one of the UK’s largest waste management companies and the largest independent in the North East.  Orchard manages electricity and gas accounts across its 20 plus nationwide sites, achieving immediate savings of 23% on annual gas spend and 20% on electricity.

Premier Waste’s environmental systems manager, Michael Curry, said: “We have saved a lot of money by using Orchard – an estimated £10,000 over two years.  This has been more usefully invested in other areas of the business.”

Ingham says that it is important for firms to lock into favorable deals now, while prices are relatively low.  Orchard predicts that as the global recession ends, fuel costs will soar with increasing demand, with organisations

He concluded: “At the moment, many customers are securing favorable prices for as far ahead as 2011 and 2012.”

The economic benefits of energy efficiency notwithstanding, soon there will be demanding legislative demands, as businesses will be forced to comply with stringent, far-reaching national targets on carbon emissions.