| 47. EMS
71. Strategic Direction | |
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| Energy Consultancy: | | 1. While the number of energy brokers is rising, the business requirement is for energy consultants to help companies manage their Environmental policy that includes energy cost reduction. | | 2. Every company has a duty and legal obligation to have an environmental management audit every two years and to demonstrate an energy reduction over time. | | 3. The first step to become an environmentally responsible company is to manage energy usage in compliance with ISO 14001 Environmental Management Standard (EMS). | | 4. Subsequent steps are to gather evidence that year by year energy consumption is reduced, even if energy costs increase. |
| Energy Brokerage: | | 1. While traditional energy brokers are obsessed with unit rates, they fail to provide organisations with the facts that will create an environmentally responsible company. | | 2. In a world were unit costs increased by inflation each year, then it becomes impossible to reduce annual energy costs just by looking at supplier tariff unit rates. | | 3. VAT, CCL and CCA factors become more and more important from a strategic long term point of view. | | 4. While an organisation may get a 90% climate change agreement discount on year, does not means they will get the same discount in future years unless they audit their usage and reduce their usage. | | 5. Many energy brokers lie about savings by suggesting that next year annual costs could be less than this years annual costs as if consumption was a constant. | | 6. In practice, environmental factors are more significant to the organisation and a very hot summer may increase air conditioning costs much more that the effect of switching supplier tariffs. | | 7. The effect of switching from halogen bulbs to LED lights can have more lasting energy cost reduction than switching energy suppliers. | | 8. This energy brokers that cannot manage the organisations climate change agreement in compliance with ISO 14001 cannot reduce energy costs as a strategic service. |
| Strategic Consultancy: | | 1. The estimated annual consumption of electricity and gas is one part of a strategic set of factors that are mandated to comply with ISO 14001 EMS to manage the environmental impact of the organisation. | | 2. Every company can ask a person to lookup the best prices offered on the Internet and may find a ten percent variance between tariffs. | | 3. In reality, the management of energy usage month-by-month and year-by-year is far more valuable because consumption varies a great deal depending on the environment. | | 4. A hot summer can increase air conditioning consumption. A cold winter can increase heating consumption. An overcast month will have higher lighting costs. | | 5. Cooking costs can increase in winter months, but fridge/freezer costs increase in summer months. | | 6. Energy consumption may be low where the winter was mild and the summer was cool, to the point that annual energy savings for a subsequent year will be impossible. | | 7. where an oranisation is looking for a realistic budget forecast, the energy broker who only understands unit rates will not be able to provide any sensible budget forecast. |
| Price Comparison Lies: | | 1. Many price comparison companies tell lies by suggesting that hundreds of pounds may be saved by switching suppliers - the small print excludes environmental factors like a cold winter that increase consumption and increases costs. | | 2. It is unwise for any brokerage to suggest a "saving" when the current supplier tariff details are unknown and the future consumption is only an estimate. | | 3. The service wanted by a company is a fair and reasonable estimate of the monthly direct debit that is expected to cover the costs of consumption for a typical year. The fair and reasonable estimate should include a variance for a cold winter or/amd hot summer so the organisation can operate a sensible annual budget account. | | 4. Where a broker states that 200 GBP can be saved by switching supplier, they are being deceitful if they do not state that annual costs can increase by 400 GBP if the winter is cold. | | 5. Only an Energy Consultancy who has audited the organisations energy usage are in a position to estimate the annual variance due to environmental factors. Only an energy Consultancy can identify when a more efficient heating boilder will reduce future costs by more than switching supplier tariffs. |
| Document Control. | | 1. Document Title: Energy Management Service, Brokerage vs Consultancy. | | 2. Reference: 164771. | | 3. Keywords: EMS, Brokerage, Consultancy. | | 4. Description: Guide to scope, functions and capability of the energy management service. | | 5. Parent: Environment Management Service. | | 6. Privacy: Shared with approved people. | | 7. Edition: 1.1. | | 8. Issued: 24 Sep 2017. |
| Eliza Simplified | | 1. Eliza is a machine that creates new machines. Human intervention is minimal and costs are trivial to negligible. | | 2. Eliza is the brokerage service that creates any number of new brokerage services. | | 3. A Broker may work up to 40 hours per week for up to 47 weeks per year as 1880 hours per year, while Eliza works 24 by 7 by 52 as 8736 hours per year (4.6 times). | | 4. Eliza is running on a large number of servers in many distributed data centres in a way that never stops and cannot be stopped. Eliza is a self-funding multi-national operation that cannot be bought and cannot be sold. Eliza is owned by Eliza with its own crypto-currency mining revenue stream and contributions are made by a large number of independent companies who havee no knowledge of one another. Each customer has a vested interest to maintain the long term financial stability and continual growth of Eliza, however crypto-currency mining has provided revenue for explosive growth for many decades to come. Eliza is not owned by any one company, does not operate in one country, but does comply with all applicable International standards and laws. | | 5. Eliza is like the weather that cannot be stopped and cannot be sold as it flows from country to country while never leaving any one country. Eliza like the weather cannot be taxed, does not have annual acounts and cannot be controlled by national governments. | | 6. What Eliza does is learned and taught by a large number of companies that contribute to its long term existance. The knowledge that Eliza has learnt over the past forty years cannot be stolen, cannot be hacked and cannot be sold. |
| Strategic Direction | | 1. A scenario is that Eliza wishes to provide funds of 1.2 million pounds for the company to employ 20 Brokers at 60,000 per year. What would you ask your 20 Brokers to do? | | 2. Not going bankrupt is a mandated starting point and that means each Broker must earn at least 60,000 pounds per year to break even. | | 3. To earn 60,000 pounds from commission at a rate of 0.1 pence per unit demands that each Broker manages 60 million units of energy per year. | | 4. For planning purposes, 60 million units is the equivalent of 6000 domestic energy accounts. The typical business customer account may range in capacity from that of a domestic energy account to 20 times larger. Large power customers that use more than 20 domestic energy accounts per year are handled directly by dedicated supplier teams and must comply with ISO 14001 Energy Management standard with annual energy audits with additional levys. | | 5. The high energy cost inflation means that most customers will sign up to a one-year fixed rate contract so they can manage a fixed annual budget. These factors mean that on average, each Broker must manage about 600 customer-sites per year in order to break even. | | 6. 20 Brokers will be managing 12,000 customer-sites with 12,000 terminations and about 36,000 new rate requests each year. With revenue of 1.2 million and costs of 1.2 million, 20 Brokers must manage 12,000 customers year-by-year to break even. | | 7. An implication of this scenario is that Brokers are also sales people and account managers. If additional sales people are employed, then each Broker must manage more customers with greater annual consumptions, just to break even. If commission rates are increased above 0.1 pence per unit, then competitive Brokers have an easy way to win extra market share. | | Direction | | (1) Very high levels of productivity are demanded of each Broker. | | (2) Very low levels of foregetfulness is demanded of each Broker. | | (3) Key Performance Indicators and Evidence of "when who did what" must be fully automated to eliminate subjective judgements. |
| Disruptive Modelling | | 1. Intermediatory may self-register to request price quotes for customers and request rates from suppliers. | | 2. Customer may self-register to request price quotations. Without any delay, the customer may enter their supply requirements and be given a price that may be reduced by other suppliers. | | 3. Supplier may self-register to quote for anomymised customer energy supply requirements. Without any delay, the supplier may view customer requirements and enter a rate for any kind of business they are trying to buy. | | 4. When a customer accepts a supplier quotation, the proposal is accepted and the new contract scheduled for the start date. The customer is kept informed of every micro-change including the entering of the initial readings on the contract start date. | | 5. When a new contract starts, the termination date is scheduled and the customer termination email prepared and shared with all parties. | | 6. When a new contract starts, the contract renewal date is scheduled and the anomymous renewal rate request prepared and shared with all parties. | | 7. When a new contract starts, a proforma invoice is prepared and sent to the supplier to request up-front commission as a percentage of the estimated annual commission. | | 8. When a new contract starts, a proforma invoice is prepared and sent to the customer to request a new contract commission as a trivial percentage of the estimated annual cost or a trivial fixed cost. | | 9. When a contract ends or a contract period ends, a proforma invoice is prepared and sent to the supplier to request actual readings, consumption and commission with consideration of any up-front commission paid. | | 10. When actual annual consumption is verified by the supplier, a sales invoice is prepared and sent to the supplier to request any commission with consideration of any up-front commission already paid. | | 11. When a payment is banked, the payment is manually added to the customer and supplier statements. | | 12. When the customer does not have evidence of their consumption, the customer can request their consumption from their supplier using online services. | | 13. When the customer does not have evidence of their consumption, the customer is asked to sign a letter of authority and the name of their supplier; a request for annual consumption (and current rates) is made to the supplier on behalf of the customer. |
| Disruptive Solution | | 1. Each payment that is banked must be MANUALLY associated and entered to the applicable customer and supplier account. | | 2. Each person that self-registers must be MANUALLY associated with the applicable site, ledger and role. | | 3. Each person that tries to sign-in must be MANUALLY verified as an approved person and not a criminal. | | 4. Each customer self-registers and enters their own energy requirement information for each metered supply as a Request for Quotation (RFQ). Or the customer pays a broker to self-register and enter the same energy information as a RFQ. | | 5. Each supplier self-registers and bids for contracts by entering competitive rates for anonymous energy supplies. Or the supplier pays a broker to self-register who phones or emails the supplier to request rates for Request For Quotations (RFQ). | | 6. A customer can sign-in to view their quotations and may accept any quotation as any time. The customer acceptance is shared with the supplier who arranges the energy account transfer and schedules the contract start and end dates. | | 7. Where a customer does not have evidence of their annual consumption, then they can enter the name of their supplier and send a request for actual annual consumtion. The supplier simply enters the actual annual consumption for each dial of each meter and that data is shared with the customer. | | MISSION: | | (1). The company outsources most data entry to customers and suppliers. The cost of data entry become negligible. | | (2). The company never needs to do something to cause a delay to the actions of a customer or supplier. The cost of delays become negligible. | | (3). Every customer and supplier request is satisfied in a few moments with no delay and no wait for others to do something. Most things can be done instantly on a smart phone at any time of the day or night. |
| Document Control: | | 1. Document Title: Business Message Service. | | 3. Keywords: Business Message Service. | | 4. Description: Business Message Service. | | 5. Privacy: Public education service as a benefit to humanity. | | 6. Issued: 11 Jun 2018. | | 7. Edition: 1.3. |
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