How Lakeside Hotel & Leisure Centre Avoided a €172,720 Increase in Energy Costs

Case Study Overview

Lakeside Hotel & Leisure Centre is an independent four-star hotel and leisure centre based in Killaloe, County Clare, with significant commercial electricity and gas requirements. As its energy contracts approached renewal, two electricity meters and one large FVT gas meter were at risk of moving onto expensive out-of-contract rates, which would have more than doubled the business's energy costs.

Utilityfair began working with the hotel eight months before its contracts expired, providing regular market updates while monitoring wholesale energy prices. We then completed a full market review, including a bespoke tender process for the large FVT gas meter, to identify the most suitable procurement strategy based on the hotel's requirements and prevailing market conditions.

By working with Utilityfair ahead of contract expiry and acting when market conditions were favourable, Lakeside Hotel & Leisure Centre secured new contracts before prices increased, avoiding a potential annual energy cost increase of €172,720.

Key Highlights: Avoided €172,720 annual energy cost increase.

The Challenge: Avoiding Expensive Out-of-Contract Energy Rates

The Lakeside Hotel & Leisure Centre was approaching the expiry of its commercial energy contracts, with two electricity meters and one large FVT gas meter due for renewal. Without action before the contract end dates, the business risked moving onto expensive out-of-contract rates, which would have more than doubled its energy costs.

The large FVT gas meter also required a bespoke procurement approach, as suppliers needed to assess the hotel's annual consumption requirements and monthly usage profile when preparing quotations. Unlike standard gas contracts, the commodity element of an FVT gas contract is linked to natural gas futures prices, with suppliers pricing each month of the contract based on prevailing wholesale market conditions. A detailed tender process was therefore required to compare supplier offers and identify the most competitive contract structure for the business.

How Lakeside Hotel & Leisure Centre Worked with Utilityfair to Save on Commercial Energy Costs

Utilityfair reviewed Lakeside Hotel & Leisure Centre's electricity and gas accounts, analysing consumption data, billing information and existing contract details to understand the business's energy requirements and available procurement options.

For the electricity meters, we prepared a market comparison of all available supplier offers, outlining the different contract structures and pricing options. This allowed the hotel to assess the benefits of tracking wholesale electricity prices compared with securing fixed-price contracts.

For the large FVT gas meter, Utilityfair calculated the hotel's annual consumption requirements and monthly usage profile before bringing the requirement to tender with multiple commercial gas suppliers. This process secured bespoke 12-month and 24-month gas quotations, allowing a direct comparison of supplier pricing and contract terms.

Working with the hotel's facilities and finance teams, we reviewed the available options, discussed the outlook for the energy market and agreed the most suitable procurement strategy. The final approach was to track wholesale electricity prices while securing a 24-month fixed-price gas contract.

Utilityfair then managed the full contracting and supplier registration process, ensuring the transition to the new contracts was completed smoothly and without disruption to the hotel's operations.

Results: €172,720 Energy Cost Increase Avoided

• Total Savings: Avoided a potential €172,720 annual increase in commercial electricity and gas costs by securing new contracts before the existing agreements expired.
• Electricity Procurement Strategy: The hotel moved from fixed-price electricity contracts to a structure linked to wholesale electricity market pricing, allowing the business to benefit if wholesale market prices decrease.
• Gas Tender Process: A competitive tender process was completed for the large FVT gas meter, with suppliers providing bespoke 12-month and 24-month pricing options. The hotel secured a 24-month fixed-price gas contract, providing better value than the available 12-month option.
• Risk Reduction: The risk of moving onto expensive out-of-contract energy rates was avoided, preventing a significant increase in operating costs.
• Budget Certainty: By securing a fixed-price gas contract and selecting an electricity procurement strategy aligned with market conditions, the business improved visibility over future energy costs and supported longer-term financial planning.

Are You Looking For a Better Deal?

Call 01 547 0999 or click below to request a free energy review. We will assess your current energy contracts, identify potential savings opportunities, and advise on the most suitable procurement strategy for your business. If you are happy to proceed, we will arrange the new contracts for you with no disruption to your business whatsoever. Utilityfair helps businesses reduce energy costs through competitive procurement.