Power Engineering Services

Electricity Supply: Quotations Received for New Connections, Alterations or Diversions –

Target-E Cost Reduction Service.

Any work in the presence of electricity supply company equipment frequently causes generation of a quotation by that company for a new connection, an alteration to an existing connection, or a diversion of their equipment. If diversion or upgrading work is called for, expensive alterations to their overhead lines, underground cables and/or substations are likely. The cost of this work is recovered from you through your acceptance and payment of the price quoted by them, and is non-negotiable.

Although the electricity supply company quotation cost is non-negotiable, the basis of their cost calculation, including all design work and other inputs such as the use of external services (including subcontractors), may be negotiable. This negotiation requires an understanding of electricity networks and procedures, and the ability to marry the needs of the customer (you) to the needs of the supply company to ensure a harmonious outcome.

Power Engineering Services (PES) can provide this service. Having many years of network design, operations, maintenance and project management experience, a cost reduction solution for any electricity network related work could make significant savings in overall project costs for consultants, architects, developers and contractors.

Once you have accepted that the electricity supply company needs to be involved in your project, and either before or after obtaining a quotation from them, PES will negotiate a net reduction in cost to what otherwise would be the case. This service, known as Target-E, is available now. A summary of its aim, benefits and how it works follows.

Target-E Service: Aim, Benefits and Costs

Target-E: Aim of the Service

Electricity supply quotation cost reduction, by negotiation with the public electricity company (PESCO) design engineers - this is the core Target-E service provided by Power Engineering Services (PES).

Target-E: Where is this service of benefit?

Customers requiring new electricity supplies, and electricity supply alterations/diversions associated with customers’ works. Available primarily for major infrastructure projects, for developers, and commercial/industrial customers, often through architects, consultants and contractors.

Target-E: Net cost of the core service to you? – it could be zero!

Target-E core service cost (the PES cost to you) is calculated and agreed as a percentage of cost reduction for an original PESCO quotation, with the purpose of realising net savings in the cost of the complete PESCO job.

The full Target-E Plus Service

The core Target-E service can be supplemented by a management service of the interface between the customer and PESCO – from design to completion (at additional cost) – this is Target-E Plus.

How does Target-E work?

a. The customer (or customer’s agent) obtains a quotation from PESCO, based on the customer's perceived requirements.

b. The quotation is offered to PES for consideration of any savings that might be made.

c. PES examines the needs of the customer against PESCO proposals.

d. PES advises customer if significant savings might be made by negotiation with the supply company. If not, the core service can only be provided if part of the Plus management service.

e. If the customer agrees to the full consultancy service at an early stage of the project, the Target-E Plus management service is tailored individually to the project.

f. PES negotiates with the supply company, and if the Plus service has been agreed, manages the work on behalf of the customer to completion of all Target-E services agreed.

g. When payment becomes due to the supply company, or on completion of all Target-E services agreed (as established beforehand), the customer is invoiced for the Target-E service(s).

Notes

1. It is not likely that supply company quotations less than £4000 [€5000] (before VAT is applied) would enable enough savings for the Target-E core service to be used without the Plus service.

2. A deposit may be required before any Target-E services are put into effect.

3. If the Target-E Plus service is agreed, costs are based on an hourly/daily rate.

Further details can be provided on request, please contact Derek Coles on +44 (0)7808 366024.

© DGC 2011