Case Studies : Africa

Client: A major manufacturer and exporter of wood-based products in South Africa engaged NUS to review its production mill’s electricity expenditures.

Result: An annual savings in excess of R400,000.

Details: In its initial analysis, NUS learned the mill was the single largest consumer of electricity of the local supply authority; accounting for a high percentage of the Council’s base load. The Council was receiving its electricity from the national supplier and reselling it back to local businesses and residential users.

NUS had recommended the client move to a beneficial alternative tariff structure. This, however, was unacceptable to the Council because such a change would result in the Council incurring significant losses, due to the size of the mill, jeopardizing its entire electricity resale program. Confronted with this dilemma, NUS quickly entered into discussions with the Council pointing out they could also benefit by altering their purchasing arrangement with the national supplier. The Council adopted the NUS recommendation and subsequently offered a similar arrangement to the mill.

Client: A division of a large international pharmaceutical manufacturer located in South Africa retained NUS to review its utility expenses.

Result: An annual electricity savings in excess of R120,000.00 and gas savings in excess of R233,000.00 per annum.

Details: After reviewing and analyzing the client’s utility invoices, NUS immediately identified that an alternative rate was more beneficial than the client’s existing rate. Accordingly, NUS recommended an immediate change to the more beneficial rate, met with members of the client’s staff to review its analysis and recommended course of action and, after receiving the approval from the client, contacted the supplier to effect the rate change.

Furthermore, NUS’ analysis revealed that the client, which was using gas to operate its steam boilers, was purchasing gas at prices that were not competitive in the marketplace given its particular circumstances. After extended meetings with the client’s gas supplier, NUS secured a sizable concession. NUS reviewed the offered concession with the client and reanalyzed the client’s requirements. NUS’ further analysis revealed that the client could significantly increase its savings, over and above the offered concession, by converting its steam boilers from gas to electricity. After reviewing NUS’ recommendation with its operations and technical staff, the client implemented NUS’ recommendation and secured a significant annual savings.