Pictured (l-r): Simon Firth, head of energy services at Vayu; Denis Cronin, head of energy procurement at C&C Group; and Stephen Behan, energy specialist at Vayu.
Vayu Energy has signed a new deal with C&C Group plc which adds C&C’s production sites in Glasgow and Somerset to Vayu’s existing gas and electricity supply arrangements with C&C in Ireland, with a combined value of €5m over the next three years.
The deal represents a milestone for European energy deregulation by enabling, for the first time, a multinational company with operations in the UK and Ireland to procure natural gas centrally from a single supplier. This means that natural gas for C&C’s key manufacturing and distribution sites across Ireland and the UK are now supplied by one provider: Vayu Energy.
The deal announced today provides C&C Group with direct access to wholesale gas prices in the UK and Ireland, allowing the company to achieve significant cost savings by taking full advantage of cheaper prices available in the wholesale gas markets. As part of a fully managed service, Vayu Energy will also provide C&C Group with a suite of procurement tools to manage consumption risk in addition to continuous market analysis and advice to minimise energy spend.
Vayu is a leading independent supplier of electricity, natural gas and renewables; offering the widest range of tailored procurement solutions to industrial and commercial customers in Ireland, the UK and the Netherlands. The company has been in operation since 2003 and since its beginnings as a business natural gas supplier has steadily grown and now supplies over 20% of Ireland’s largest natural gas business users. Vayu’s customers now include companies such as Tesco, Aer Lingus and FMC among its growing client base.
Since its expansion into the UK in 2014 targeting the business gas market, Vayu Energy has invested heavily in winning customers in the industrial and commercial sector – including those with operations spanning both the Irish and UK markets.
The Irish energy supplier, which is backed by international commodity group Glencore as its largest shareholder, has grown steadily since 2003 when it became the first independent supplier to be awarded a gas shipping and supply licence in Ireland. The company now supplies over 20% of Ireland’s largest natural gas business customers and 15% of the mid-sized gas user segment. Gas customers include companies such as William Grant, Argos and Debenhams.
Denis Cronin, head of energy procurement at C&C Group commented: “The deal is an important part of our strategy to drive continuing efficiency across our operations and will significantly streamline our approach to gas procurement in Ireland and the UK. The deal provides our business with increased flexibility and cost benefits and is backed up by Vayu’s deep expertise and understanding of the gas market.”
Colm Kennedy, managing director of Vayu Energy said: “The energy market is undergoing a fundamental change with businesses seeking more effective ways to procure and manage their energy – moving toward more sophisticated solutions that minimise the per-unit cost of energy purchased. Energy services based in the cloud is the future, and Vayu are at the forefront of this change.”