Industry: Water Supplier and Recycling
Locations: United Kingdom (England and Wales)
Anglian Water is the largest supplier of water and recycling services in England and Wales by geographic area, operating and maintaining over 110,000 km of water mains and sewer pipes, 140 water treatment works, and over 1,000 water recycling centers across 27,500 square km. Serving more than 6M domestic and business customers—at a rate of almost 1.2B liters of water every day—Anglian is one of the largest energy users in the East of England.
Like many water suppliers, Anglian recognizes that climate change will be one of the biggest risk factors to their business over the next 25 years. Minimizing both the carbon emissions created by everyday operations and the “capital” carbon used in building assets such as water mains, sewers, and pumping stations is vital to reducing the company’s overall impact on climate change. In this pursuit, Anglian has already been recognized with the Queen’s Award for Enterprise—the UK’s highest accolade for business success—for its contribution to setting new standards for sustainability and embedding sustainability throughout its operations. Going forward, Anglian’s participation in the Carbon Reduction Commitment and Governmental emissions reduction reporting requires comprehensive data and accurate and easy-to-use reporting tools.
As a government-licensed entity, Anglian Water is subject to a high level of compliance requirements, and the prices it can charge are regulated by the Office of Water Services (OFWAT). However, the company struggled to gain visibility into energy costs, leaving staff with a limited understanding of operational needs and management with unreliable and insufficient data to make decisions.
Lack of visibility and reliable data also made budgeting a significant challenge for Anglian Water. Anglian had difficulty managing costs and lacked the visibility to implement a long-term solution.
Centralized Utility Bill Management
In 2003, Anglian Water integrated utility bill management (UBM) software into its energy management processes. Tom Lee, Energy Contract and Information Manager for Anglian Water Services, needed help establishing a centralized, comprehensive UBM program, and deployed EnerNOC’s software across 400 sites in the first year of the program’s development. EnerNOC’s professional services team made it easy to get the cloud-based software up and running, quickly giving Lee and his team a centralized system to track and manage utility bills, review monthly account invoices, analyze trending historical costs, identify and resolve bill problems, compare sites across usage and other key performance indicators (KPIs), and download or email data and reports to engage relevant stake-holders. Anglian has since deployed EnerNOC’s software across 7,200 sites, and uses it to process and manage around 50,000 utility invoices annually.
Bill Validation and Cost Savings
With EnerNOC’s UBM software in place, Lee can automatically spot utility bill errors and mitigate over-charges with access to line-item tariff details by unit and cost for every bill and the 66-step bill validation process. One of the largest savings opportunities occurred after the UK government removed the Climate Change Levy exemption for electricity from renewable sources, which required changes to the tariffs. EnerNOC’s bill validation process identified that the supplier had not invoiced on the amended tariff, prompting Anglian Water to request a rebilling, resulting in an additional £200K reimbursement. With assistance from the EnerNOC Customer Success team dedicated to supporting Anglian Water, Lee evaluated the organization’s historical bill data and identified consistent errors in about 10-15% of £9.75M worth of total energy bills.
Budget Forecasting and Certainty
With visibility into energy cost and consumption patterns across its operations, Anglian can easily access each site’s estimated energy use for the year, allowing its finance team to allocate budget accordingly. Their improved ability to forecast and manage budgets has enhanced cash flow visibility, helps Anglian to accurately report out to regulators, and helps to keep their customers’ bills affordable. “All of our electricity and gas, all of our billing, all of our data goes through EnerNOC’s software,” Lee said. “With that, we can report on this data, including consumption by site year-over-year, which allows us to meet strict government compliance regulations on emissions reporting.”
Benchmarking and Energy Efficiency
In addition, Anglian uses EnerNOC software to prioritize investment based on each site’s energy performance. Using multi-site, multi-parameter reports monthly, Lee can help regional managers identify energy outliers based on which sites are exceeding their YOY budgets or consumption thresholds. By using this benchmarking tool, each team is incentivized to find and produce savings. EnerNOC also integrates with other monitoring systems that include information on flow data, hours run, and other performance data. This information is combined with EnerNOC data to spot any anomalies in pumping stations or other sites, giving managers the ability to track and report on performance at a high level of granularity with simple, straightforward reports. Furthermore, they now have the tools to make better operational and maintenance decisions, prioritize opportunities for efficiency improvements, and find ways to save on costs. As of 2016, Anglian’s energy efficiency savings have exceeded £20 million.
Sustainability and Carbon Reporting
“Anglian has an operational carbon reduction goal to exceed 7% by 2020 from a 2015 baseline, and a 70% reduction in capital carbon by 2030 from a 2010 baseline,” said Lee. “EnerNOC’s system tells us how our electricity and gas consumption impacts direct and indirect carbon emissions, enabling us to better understand and meet our reduction goals and report out on and comply with our carbon reduction commitments.” Using EnerNOC’s software, Anglian is able to easily measure, manage, and report progress against their sustainability goals. From 2010 to 2015, Anglian delivered around 1,000 energy projects, bringing their cumulative savings to well over £20 million. In the same period, they delivered a three-fold increase in the amount of renewable power they generate. These initiatives have made a significant contribution towards achieving their longer-term operational carbon reduction goal. Anglian Water is also using EnerNOC’s software to monitor the outputs from its embedded renewable generation. Sub-metered data from its three wind-turbines on two water recycling centres is hosted on a day+1 basis to help monitor performance. That data is also integrated with the fiscally metered import and export data for each site to create virtual site meters, enabling the company to show the consumption of the plant on-site, regardless of the source of the power. This approach is being expanded to other sites with solar generation.