KGM Energy Brokers - eProcurement with Attitude


Richmond Fellowship has been supplying mental health services for more than 50 years. The charity helps thousands of people in England each year, offering a wide range of housing, care, employment and community support services.

The Objective


Richmond Fellowship originally approached KGM Energy brokers to validate some invoices they were set to pay. We had a look through them and noticed that the contract rates given by the supplier were inaccurate. They hadn’t been changed in line with a reduction in energy prices. We immediately rectified the situation for them and guaranteed a saving of £1,500. But instead of leaving it there, we offered to do further investigations of the charity’s historical invoices to see if errors had been made.


The Process


KGM Energy Brokers spent three months meticulously checking through three years’ worth of Richmond Fellowship’s gas and electricity invoices for around 60 sites.



·     We identified bills that looked suspiciously large compared to similar sites that had been invoiced correctly

  Checked whether gas meters at those properties stated M3 or FT3 on the dial and made sure they matched with what the supplier had recorded on the invoice
  Checked contract rates


The Outcome



·       Gas meters that the supplier had thought were measured in cubic feet were actually measured in cubic meters. As a result, an incorrect formula had been used to convert meter reads to kilowatt hour (kWh).

  As with the latest invoices, the archived invoices also showed incorrect contract rates
  Mistakes were made with old gas meters that only had 4 digits due to them rolling over from 9999 back to zero, causing problems with vacated property estimates
  Incorrect VAT added





·       After notifying the supplier about the meter reading, VAT and contract errors in the archived invoices, the amounts were rectified and Richmond Fellowship were reimbursed.

  More than £20k of recovered savings for the client
  Our fees were based on 20% of savings made, compared with the 50:50 savings split of most brokers.
  No savings, no fees.


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