HEG Corporate Brochure

STRUCTURED ENERGY COST MANAGEMENT SOLUTIONS

MEASUREMeasuring Energy cost can be a complextask. Whether you are a single site lowerenergy user or a large industrial energyuser, we offer clear and transparentcomparison & procurement services tobusinesses of all sizes. Regardless ofenergy spend or organisation size, ourcomparison and procurement services aredeveloped in line with the client’s needs. MONITORElectricity and gas markets in Irelandare driven by factors as diverse asearthquakes in Japan, conflict in Ukraine,OPEC quota strategies, and weather, toname but a few. HEG monitors all thesefactors and more, and constantly feedsback to you what factors affect you, whatthey mean for you and what you shouldconsider doing – both to mitigate risk andseize opportunities to hedge or unhedge aposition. Further to this, our HEG EnergyBuddi™ has been developed to help youactively monitor and control your energyusage thereby reducing your consumptionand carbon footprint and helping youunderstand how and where you use yourenergy. REDUCEOur reporting tools allow you to collectthe data you need to report your energyuse and carbon emissions, plus theyprovide the road map to help you reduceyour energy cost, energy use and carbonfootprint.

Table of ContentsAbout us Page 4 Page 5 Our Story - In the beginning Management Team Services - What we can do for your business Page 6-9 Energy Procurement - Tendering & Price Management Price Risk & Trading Management Energy Market Intelligence Market Tracker HEG Energy Buddi Green Energy Invoice Validation Account Management Energy AuditsOur Customers Page 10 Page 11 Case Study – The Tifco Hotel Group Page 12 Case Study – Bannon Commercial Property Consultants Page 13 Case Study – Lisney Real Estate Consultant Page 14 Case Study – Office of Government Procurement Case Study – Royal Cork Yacht Club “Servicing in excess of 70,000 sites, both private and public sector, and managing over €1 billion in energy spend.” Page 3

In the beginning...Founded in 2007 and wholly Irish owned, HEG is the largestenergy price comparison service for SME’s and the largestenergy procurement consultancy for corporate and I&C(Industrial and Commercial) business on the island of Ireland.We help businesses of all sizes to measure, monitor andreduce their energy costs and carbon footprint.Our customers range from the single-person workshop toamong Ireland’s top industrial users. While our offering isbespoke to a client’s requirements, we offer a comprehensiverange of energy cost-related services including energyprocurement, energy price risk management, energy trading,energy market intelligence & in-house generated energymarket reports, energy market wholesale price tracker, invoicevalidation, energy account management, building energyaudits, grouped energy discounts and the HEG energy billingaudit service.For the small and medium user, our award-nominated andpioneering HEG Energy Buddi™ monitoring system helpsenergy users understand where and how they use energythrough a web based dashboard and smartphone app,leading to improved habits and awareness, helping to reduceconsumption, costs and carbon footprint.For the larger energy user, our energy trading desk hasaccess to real-time information about a wide range of factorsincluding power prices, prices of key commodities like gas,coal and oil and follows global, regional and local eventsaffecting demand and supply dynamics. We help businesses of all sizes to measure, monitor and reduce their energy costs and carbon footprint.Page 4 Email: [email protected] Web: www.heg.ie

Our Management TeamColin Barry Ewen Barry Sandra QuinnMANAGING DIRECTOR FINANCE DIRECTOR CORPORATE SERVICES DIRECTORColin Barry (Managing Director) founded Ewen Barry (Finance Director), Sandra Quinn (Corporate ServicesHEG in 2007. An honours degree graduating top of his year from Director) joined HEG in 2013 with 15Economics graduate of University University College Cork, is a chartered years energy industry experience asCollege Cork, Colin still keeps a close accountant with over 17 years the former Country Manager for Irelandrelationship with key clients and energy experience. Ewen is a former senior with Schneider Electric Professionalsuppliers while steering the company manager in transaction advisory services Services. Sandra is recognised as onewhich has grown organically from a one with Ernst & Young prior to setting up of the most experienced and proficientperson operation to a current head count his own practice focusing on SME high energy procurement professionals inof over 40 personnel across field sales, potential start ups. Ewen has overall Ireland, having managed and supportedinside sales, corporate sales, trading, responsibility for the finance function of the OPW’s procurement projects. Sandraaccount management, administration, the company. manages the corporate offerings forIT, marketing and accounts. our I&C clients encompassing flexible procurement, trading, risk management and invoice and tariff validation. Sandra works particularly closely with our public sector clients in the Republic and Northern Ireland.Mark Dickinson Dermot CullenNON-EXECUTIVE DIRECTOR DIRECTOR OF SALESMark Dickinson (Non-Executive Director) Dermot Cullen (Director of Sales) has 30founded Encore International in 2001 years senior management experience.developing a portfolio with over £2bn Having run his own business for over aof energy spend. After 10 years at the decade Dermot understands the needhelm, Encore was successfully sold for effective cost management and isto M&C Energy Group and with over therefore dedicated to ensuring our4,000 clients across 30 countries, valued clients avail of the cost savingMark as CEO grew M&C to become a opportunities in a challenging energyglobal independent service provider market. A Graduate of Business andrepresenting over £8bn of energy Marketing from Rathmines College,spend. In 2012 Mark was awarded the Dermot has overall responsibility forprestigious Accomplished Entrepreneur the team of inside sales agents, mostof the Year award from his alma mater of whom have utilities or telecomsthe London Business School. Since backgrounds, and for the retention andthen Mark has been involved in several renewal of existing customers.business ventures, offering angelinvestments and providing advisory andinterim management services throughhis firm Triple D Ventures. Horizon Energy Group - Structured Energy Cost Management Solutions Page 5

What we can do for your businessEnergy Procurement - Tendering & Price Price Risk & Trading ManagementManagement ‘HEG will put in place a risk ‘HEG manages the management policy that is procurement of over specifically tailored to the €1billion in energy spend needs of your organisation’ across over 70,000 meters.’ On procuring a flexible energy contract it is crucial to the successful management of the budget that you implement andHEG is Ireland’s largest energy procurement consultancy. We operate a rigid risk management strategy that works with yourmanage the procurement of over €1billion in energy spend organisation’s objectives to manage both market and volumeacross over 70,000 meters. Market volatility has caused many related risks.organisations to switch to a more flexible approach to theirprocurement in an effort to manage price risk. Through constant market analysis, a structured risk plan, established short and long term goals, and effective execution,The two fundamental options are fixed price procurement or we work to reduce your energy spend. Our comprehensive priceflexible price procurement. risk management service is designed to monitor, measure, and evaluate energy market risks and opportunities. ThisWhat we can do for you… service bridges a critical energy market information gap. We provide clients with an informed procurement decision-makingUsing our bespoke pricing and comparison software, an capability based on a combination of HEG expert consultation,informed understanding of market dynamics, and the and client risk assessment tools to customize risk tolerance onstrength of our combined portfolio, HEG can help to deliver an individual client basis. Our advice is based on data-drivenunparalelled value and options. market information.We can…• Create an up to date database of your sites• Collect data and check for inconsistencies• Issue a tender – stating any specific needs you might have• Help to decide on the “strike” day• Provide you with price certainty and budget certainty• Optimise your cost savings against budget• Minimise and manage your exposure to volatile energy markets• Analyse offers and negotiate to ensure the best price• Make a recommendation on which supplier to choose• Process acceptances• Check contractsPage 6 Email: [email protected] Web: www.heg.ie

Energy Market Intelligence Market Tracker ‘HEG publishes daily and ‘the first and only “tracker” weekly reports, researched product in the energy and written by market market in Ireland available intelligence energy experts’ to all energy users regardless of consumption’ HEG has developed the only “tracker” product available in the Irish energy market. Previously only businesses with a spend greater than €500K could avail of flexible contract in the purchase of their energy products. Now, with the HEG Tracker everyone can enjoy these benefits. Your energy rates track the markets and when wholesale prices fall, you see the savings on your bill. Conversely, we protect you against any price spikes by locking in portions of your rates to protect certainty.Oil and gas markets are driven by factors as diverse asearthquakes in Japan, conflict in Ukraine, OPEC quotastrategies, and weather, to name but a few. HEG monitors allthese factors and more, and constantly feeds back to you whatfactors affect you, what they mean for you and what you shouldconsider doing – both to mitigate risk and seize opportunities.HEG publishes a series of easily understood reports written inplain English which keep you informed on what is happening inthe energy market. Furthermore, HEG looks for issues that willinfluence the market in the coming months and informs ourcustomers as to what to watch for and what it means for them.HEG publishes daily and weekly reports, researched andwritten by market intelligence energy experts. View a sample ofthe daily report HERE and the weekly report HERE .You can subscribe to these reportsby emailing us at [email protected] on our website www.heg.ie/reports.Horizon Energy Group - Structured Energy Cost Management Solutions Page 7

What we can do for your businessHEG Energy Buddi Green Energy ‘real time access to ‘HEG can procure 100% electricity consumption renewable energy for data through a web based your business and issue a dashboard and HEG certificate of compliance for smartphone app.’ your premises.’With HEG Energy Buddi our customer gains real time access As companies become more aware of their impact on theto their electricity consumption data through a web based environment around them, more of our clients are enquiringdashboard and smartphone app. The HEG Energy Buddi simply about having access to renewable energy sources in an effortplugs into your existing broadband router and wirelessly links to reduce their carbon footprint.with energy monitors placed in one or more meter locationsthroughout your business. With 150 countries across the world agreeing to new greenhouse gas emission caps at a meeting in Paris inYou can access live or historical data from any internet December 2015, regulation has being brought in acrossconnected device, anytime and anywhere. Capable of Europe to limit the use of “dirty” fuels. If your company ismonitoring multi-phase electricity feeds, the HEG Energy Buddi proactive and wants to make a difference sooner rather thanis ideally suited to the commercial environment. Contact us later, we can procure 100% renewable energy for you and issuenow to speak with a member of our Energy Buddi Team. you with a framed certificate of green energy compliance. Invoice Validation ‘HEG provides year-round account support, offering comprehensive assistance in managing your energy requirements.’ As contract structures become increasingly complex, checking and confirming your energy bills can prove a time-consuming and potentially confusing task. Coupled with the fact that billing errors, particularly within the non-half hourly metered market, are rife, you may be building up to a potentially expensive headache. Our dedicated team of specialists can undertake bill validations retrospectively or if preferred, prior to payment, giving you the peace of mind that you are only paying invoices which are correct. We will analyse bills against a set of parameters agreed with you and will ensure that checks are carried out in core areas. A monthly discrepancy report will allow you to track any errors identified so that you can see the benefits of the service. In addition, our specialist team will undertake to assist in the resolution of any queries resulting from the process, liaising directly with the supplier to ensure that errors are corrected as quickly as possible.Page 8 Email: [email protected] Web: www.heg.ie

Account Management Energy Audits ‘HEG provides year-round ‘All companies over a account support, offering certain size are now comprehensive assistance required by law to carry out in managing your energy an energy audit ‘ requirements.’ The EU EED is part of the EU’s action plan to address globalWe are committed to providing excellent customer service warming. Of significance to businesses is Article 8 of theand aim to show transparency, integrity and professionalism Directive that requires large organisations to carry out anin everything we do. We take pride in building long-lasting energy audit by 5 December 2015 and every four yearsrelationships with our customers; understanding their business thereafter.needs and supporting their internal teams. This EU Directive has been transposed into Irish law as SIThe Account Management team act as the focus of interaction, 426 of 2014. In the UK, Article 8 of the Directive has beenensuring that strong working relationships can be developed implemented by a scheme known asand your needs best met. We believe in the importance of ESOS.working in partnership with our clients to achieve their specificrequirements and are proud of our very high level of customer In summary, the Directive requires large organisations toretention. have a high quality energy audit undertaken/signed off by a competent person.HEG provides year-round account support, offeringcomprehensive assistance in managing your energy HEG has a team of SEAI Registered Energy Auditors trained torequirements. analyse your utility bills and building equipment and come up with financially sound energy saving opportunities, including: 1. Lower operating costs 2. Reduction in energy bills 3. Increase in productivity 4. Improvement of equipment reliability 5. Lower equipment maintenance costsHorizon Energy Group - Structured Energy Cost Management Solutions Page 9

Case StudyTHE TIFCO HOTEL GROUPSector: HospitalityAnnual Energy Consumption: 7 GWhAnnual Energy Spend: €2.7 millionContract Type: Flexible-Risk ManagedYearly Savings Achieved: €111,974About the ClientTifco Hotel Group is Ireland’s number one choice forConferences, Meetings and Events offering a comprehensiveselection of size, scale and choice in venues and can cater forevery conference or event scenario, accommodating from 2 to1,800 delegates.The ChallengeTifco Hotel Group was looking for an independent consultantwho had strong established relationships with the varioussuppliers in Ireland and who could recommend a product tosuit the specific requirements of the hotel industry.Having always had fixed price contracts, the group alsosought to gain comfort in changing to a flexible product bydealing with a company that was an expert in the field of riskmanagement and basket procurement. “Tifco engaged HEG to assist with energy procurement and contract placement for hotels under our remit. The result of the exercise has seen a six figure cost benefit on the combined electricity and gas portfolio, which also introduced the group to a fully risk managed product”The SolutionHEG negotiated contracts with the hotel group’s energysupplier and saved Tifco €111,974 or 4.2% on annual spend.By risk managing the portfolio as well, HEG projects furthersavings of €178,066.28 over the period of the supplycontracts on natural gas and electricity which equates to afurther 3.5%.For more information onBasketed Procurement & Risk Management,Phone + 353 (0) 21 23 55 777Page 10 Email: [email protected] Web: www.heg.ie

Case StudyBANNON COMMERCIAL PROPERTY The ChallengesCONSULTANTS The brief from the client was for HEG to carry out aSector: Commercial Property Management procurement exercise for their group of properties,Annual Energy Consumption: 8.9 GWh synchronising contract start and end dates for all propertiesAnnual Energy Spend: €2.1 million and using bulk buying power to achieve best available rates.Contract Type: Flexible - Risk Managed HEG was also requested to review all MICs and tariffs to findYearly Savings Achieved: €107,817 any anomalies in the billing format and therefore optimise the client’s costs. Bannon actively review their clients’ energy consumption profiles, so this has been something HEG was asked to advise on.Executive Summary The SolutionHEG has been involved with Bannon for the past number of HEG carried out a number of rounds of tendering on behalf ofyears, providing procurement, market intelligence and account the group to achieve best pricing. Contracts were awarded tomanagement services for their portfolio’s electricity and gas the leading supplier, all with the same start and end date, andsupplies. any new instructions Bannon have received have been rolled into the present contract. All of the savings opportunitiesAbout the Client identified in our MIC and tariff analysis report have been processed, resulting in strong savings across the portfolio.Bannon is Ireland’s largest domestically owned Commercial Bannon were set up with premium online access with theirProperty Consultancy with a team of 55 experienced Chartered supplier, providing them with the ability to review consumptionSurveyors and Commercial Property Consultants, and is data in depth. Bannon also received HEG Energy Buddis to usethe market leader in Retail Management. Bannon Property on their sites.Management is constantly looking for ways to add value totheir portfolio of client assets through the introduction of The tender realised a saving of €81,817.16 ex VAT againstprofessional solutions. the previous position. On top of this, the MIC and tariff amendments brought a further saving of €28,171.76. Horizon Energy Group - Structured Energy Cost Management Solutions Page 11

Case Study LISNEY REAL ESTATE CONSULTANT Sector: Commercial Property Management Annual Energy Consumption: 7 GWh Annual Energy Spend: €1 Million Contract Type: Flexible - Risk Managed Yearly Savings Achieved: €86,235 As Ireland’s largest independent real estate company, Lisney helps many institutional and private investors, companies and individual owners to manage their properties. Lisney has 500,000 sq. metres of accommodation under management in more than 300 properties including shopping centres, office blocks and mixed-use schemes. “Lisney’s energy procurement needs have been managed by HEG for the last number of years. The Lisney portfolio is currently in a flexible contract, risk managed by HEG, which has given us significant savings over the fixed position. HEG has also given considerable benefit to our clients through adjustment of electricity profiles and identifying and obtaining credits and rebates.”Page 12 Email: [email protected] Web: www.heg.ie

Case StudyOFFICE OF GOVERNMENT “HEG is the energy advisor toPROCUREMENT the OGP. Under this contract HEG manages the tendering,Sector: Irish Government procurement and energy cost-Annual Energy Consumption: 2,500 GWh related services on behalf ofAnnual Energy Spend: €241 Million all schools, all Health ServiceAbout the Client Executive buildings, all local authorities, all defenceThe OGP commenced operations in 2014 and, together force properties and centralwith four key sectors (Health, Defence, Education and LocalGovernment), takes responsibility for sourcing all goods and government buildings”services on behalf of the Public Service. In addition, theOGP also takes full responsibility for procurement policy andprocedures.Through the OGP and the sector-retained procurementfunctions, the Public Service speaks with “one voice” tothe market for each category of expenditure, eliminatingduplication and taking advantage of the scale of publicprocurement to best effect. This move is in line with bestpractice in the public and private sector and is part of thecontinuing reform programme being driven by the Departmentof Public Expenditure and Reform.The SolutionHEG is the energy advisor to the OGP. Under this contract HEGmanages the tendering, procurement and energy cost-relatedservices on behalf of:• All Local Authorities in Ireland including Town Councils, Regional Assemblies, County Enterprise Boards & Libraries.• The Irish Health Sector including, but not limited to, the Health Service Executive (HSE) and the Health Information and Quality Authority (HIQA), and agencies that deliver health & personal social services, which are funded by more than 50% from Irish Exchequer funds.• Third level institutions (Universities, Institutes of Technology); members of the Education Procurement Service.• ETB schools; primary, post-primary, special and secondary schools; ETBs acting on behalf of schools, groups and clusters of schools and youth centres;• An Garda Síochána• The Defence Forces• The Irish Prison ServiceEncompassing tendering, competition management, energyprice risk management, invoice and tariff validation,and market intelligence, HEG is proud to be thechosen advisor to the Irish Government. Horizon Energy Group - Structured Energy Cost Management Solutions Page 13

Case Study ‘the Royal Cork has installed the HEG Energy Buddi, giving both live and historical access to the energy consumption via a web based1720-2020 dasboard and smartphone app.’ROYAL CORK YACHT CLUBSector: Sports and Social ClubsAnnual Energy Consumption: 210,000 KWhAnnual Energy Spend: €35,000Contract Type: Risk ManagedYearly Savings Achieved: €7,000About the Client Pictured is Gavin Deane, manager of the Royal Cork, accepting the Green energy certificate from Dermot Cullen, Director of Sales, HEG.The Royal Cork Yacht Club is the oldest yacht club in the world.Going from strength to strength, total membership is currently The Solutionaround 1600, facilities are unparalleled in Ireland and continueto expand and major World, European & Irish Championships As part of the Royal Cork’s commitment to it’s environmentalare hosted in the club regularly. Volvo Cork Week, which is policy, it has engaged energy consultant HEG to source aheld every two years, is regarded as one of Europe’s best competitive renewable energy contract on it’s behalf. The resultregattas and attracts contestants from all over the world. The is that not only has the Royal Cork reduced it’s carbon footprintactivities of the club are regarded as a major tourism asset for it has secured savings and future recoverable savings.the Cork area and significantly contribute to the economy ofCrosshaven. The Royal Cork may be almost 300 years old but it Furthermore, in its effort to reduce consumption across theis still vibrant, progressive and innovative – just as it was when premises, the Royal Cork has installed the HEG Buddi, givingit was founded in the year 1720. both live and historical access to the energy consumption via a web based dashboard and smartphone app.Page 14 Email: [email protected] Web: www.heg.ie

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Cork: +353 (0) 21 23 55 777 LoCall: 1890 911 777 Email: [email protected]: +353 (0) 1 68 55 777 NI/UK: +44 28 9575 7872 Web: www.heg.ieHorizon Energy Group, 4400 Airport Business Park, Kinsale Road, Cork, Ireland.