In the past, energy budgeting was reasonably easy. Increase last year’s budget by an agreed percentage.
For many years this simple approach yielded great results. Satisfying most businesses’ financial requirements.
Market deregulation and rising price volatility have rendered this approach obsolete. As a business’s sourcing and risk management strategies become more complex, so do its budgeting and tracking.
To help businesses meet this challenge, CEP provides Budgeting and Variance Tracking services.
We start the process by investigating your energy consumption. Reviewing past consumption levels and discussing operational and non-operational adjustments. The projected consumption is applied to your adjusted tariffs. Hedged commodity purchases, open market positions as well as other applicable ancillary charges. In short, CEP constructs an annual forecast of your total energy costs.
Once we have constructed your annual budget. This is then used to track your progress on a month-by-month basis. Highlighting cost variances, identifying their source, consumption, unit price or other charge item.
