Tradition Energy and OMNIA Partners Reduce Energy Costs by 16% Annually for Global Chemical Manufacturer

Jun 28, 2023   |   Tradition Energy


A leading manufacturer, with facilities across the globe specializing in peroxide-based specialty chemicals, was in need of a new procurement solution for their energy management. Historically, the manufacturer's domestic energy procurement strategy was to aggregate its load with its sister company. When the sister company was sold, it left the manufacturing company without a procurement solution. 


Tradition Energy informed the manufacturer that as a member of OMNIA Partners, they could purchase energy procurement services with Tradition Energy through a group purchasing agreement. Tradition Energy evaluated the manufacturer's existing electricity and natural gas agreements and identified several ways to improve on cost and contract language. 

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They discovered the manufacturer's monthly contracted gas volumes had automatically renewed for the past 10 years, which contributed to inaccurate volumes that fell short of actual usage. This resulted in a deficit that required them to purchase additional gas at much higher market rates. 

The sister company only worked with one energy supplier, so there wasn’t room for competitive sourcing or negotiation on contract terms and conditions. Their previous strategy was to sign short-term (1 year) contracts because they thought market rates would eventually decline. After reviewing Tradition's proprietary market research, the manufacturer witnessed a decline in future prices and learned they could lower their costs and risk by purchasing long-term through a GPO. 


Tradition Energy sourced 5 suppliers for natural gas and 8 for electricity, while negotiating three new contracts for the manufacturer. Each fixed-rate contract was negotiated to include more favorable language and pricing to protect them from long-term cost increases.  

The renewal offers from the incumbent natural gas supplier reduced their budget by 50%, and the updated gas volumes decreased their ongoing natural gas costs, as well. By leveraging the purchasing power of OMNIA Partners, the member secured an energy supply agreement with Tradition Energy that reduced annual spend by 16% and provided budget certainty for long-term management. 

Ready to start saving on your energy management and purchasing strategy? Fill out the form below to learn more about Tradition Energy’s unique solutions for your business, available through OMNIA Partners. 

About Tradition Energy and OMNIA Partners

As your ally in the purchasing process, OMNIA Partners is dedicated to optimizing procurement for your organization. Our goal is to improve the way your organization identifies, evaluates, and procures what they need at the best value. With free membership, you'll gain full access to our portfolio of leading national supplier contracts, spend visibility, analytics, and subject matter experts to help you identify more strategic and efficient ways to procure. We are here to help you achieve your procurement goals while saving you time and money along the way. 

Tradition Energy is the nation’s largest independent energy procurement and sustainability solutions consultant. We are the trusted advisor to more than 1,300 commercial, industrial and governmental clients ranging from Fortune 500 companies to medium-sized businesses to local municipalities. 

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