Community Buying unLimited has teamed up with Cornwall Together, which unites the power of the county’s major employers to negotiate with energy companies to achieve the best deals on oil, gas and electricity.
The model, conceived by the Eden Project and launched in late July, includes Cornwall Council, Cornwall NHS, St Austell Brewery, CEP and Unison.
Community Buying unLimited, which is set to manage the oil side of the negotiations, is hopeful of rolling the system out across the rest of the UK very quickly. Founder, Chris Pomfret, hopes that this will help the oil supply industry to keep track of when customers are likely to order more oil, preventing shortages for buyer and supplier.
The model is based on businesses being connected together by Smart Meters, which allows users to keep track, via the internet, of their own energy levels and current information about prices and supplier levels.
However, Kevin Bennetts, owner of Consols Oils, said: “Community Buying unLimited claims to be about to revolutionise oil sales and sort out dishonest inefficient oil suppliers. But to deliver oil you need tankers, and the company doesn’t have any. While he sits and thinks, we are investing heavily in order to serve our customers better.
“Smart meters will see future orders go to the most suicidal quote from a firm that is desperate for work.
“Family firms like Consols Oils work in clearly defined areas where they are part of the community they serve, and have been built up through hard work and dedication. Our biggest asset is our loyal customer base.”
Fuel Oil News will be looking at the scheme in more depth in the magazine, and will be looking for comment from distributors. To comment, please email alex@fueloilnews.co.uk
Craggs Energy managing director, Chris Bingham, and new depot manager Jeremy Cosway
Craggs Energy has become the new owners of the Samuel Cooke and Co depot, based in Padiham.
Last month came the sad news that the Burnley based fuel distributor Samuel Cooke & Co, had gone into administration resulting in the loss of over 80 jobs.
Craggs Energy, an independent fuel company based in Hebden Bridge, has taken over the depot and launched the business in the Lancashire area using the local knowledge of two former Samuel Cooke and Co employees.
Craggs Energy managing director, Chris Bingham, explained: “We have built our business by using experienced staff and delivering high levels of customer service at a fair price. Opening a depot in the Burnley and Pendle area means we can extend this promise and provide the local area with a family run local company they can trust to take care of their fuel requirements”
Jeremy Cosway, ex depot manager, and Ben Duckworth, ex marketing manager, of Samuel Cooke and Co have both joined the team to launch the new Padiham site.
Jeremy Cosway said: “I worked at Samuel Cooke and Co for six years and I was the depot manager for two of those. It was sad to say goodbye but I’m really happy that I can continue my career in Padiham and continue to focus on the local area”.
Ben added: “I was really disappointed when Samuel Cooke and Co Ltd was forced to close, but thanks to Craggs Energy, we can continue our efforts of serving the Burnley and Pendle area out of the well-known Padiham depot.”www.craggsenergy.co.uk
New regional manager for south east Anglia, Keith Durrant
GB Oils has appointed Keith Durrant as regional manager in south east Anglia, to manage the new Pace Fuelcare depot in Ipswich.
Keith, who has lived much of his life in the local area, brings a wealth of business experience to the role, having held several senior managerial positions with companies such as ICI, Burmah – Castol and Total. Keith joined GB Oils two years ago.
His primary objective in his new role will be to stimulate organic growth and elevate the Pace brand to become the first choice for customers across the region. The area includes oil distribution depots in Shefford, Letchworth, Cambridge, Braintree, and Hadleigh, plus the newly constructed multi million pound terminal in Ipswich.
Simon Willis, general manager at GB Oils, commented: “Keith’s appointment to manage the business in south east Anglia comes following his successful work for the company during the past two years. We have no doubt that he will be fantastic in this new role and will help deliver our ambitious plans for the new depot and wider area.”
Keith added: “As well as providing competitive pricing and continuous improvements to services, my aim is to ensure we continue to deliver exceptional standards of customer satisfaction, whilst remaining at the forefront of fuel distribution, both within east Anglia, and throughout the UK”.
Following OFT action, GB Oils, the largest supplier of heating oil in the country, has changed its domestic heating oil contracts ensuring quoted prices do not increase from the time an order is made until the customer is billed on delivery.
When a consumer orders from a supplier, ‘spot’ prices are quoted that reflect the current market price of oil. The OFT has today secured legally binding undertakings from GB Oils to change its terms and conditions ensuring prices quoted at order remain fixed until delivery.
The action follows on from its 2011 Off-Grid Energy Market Study, which identified concerns that some suppliers may not be treating their customers fairly.
Mary Starks, senior director in the OFT’s services, infrastructure and public markets group, said: “Customers need to know where they stand when they are dealing with suppliers. The action we have taken will allow consumers to buy with confidence, even during periods when the weather is snowy, and prices are changing rapidly.
‘This adds to a body of enforcement work the OFT has undertaken to ensure that users of off-grid energy are treated fairly by suppliers.”
Other action taken in this sector includes securing voluntary changes to the content of misleading websites, and voluntary agreements from the major liquefied petroleum gas (LPG) suppliers, to improve transparency around switching and cancellation rights.
More
With the RHI and Green Deal set to encourage a push towards alternative technologies, OFTEC has taken a look at the true costs of going green for rural homeowners.
Using the Energy Saving Trust’s online ‘home energy generation selector’, costs and energy savings were calculated across a range of renewable technologies for a typical three-bedroom cottage in east Anglia, currently using oil for heating and hot water.
If an existing oil-fired boiler was replaced with a biomass model then fuel bills would actually rise by £430 per year. Ground source and air source heat pumps did not fare much better – it would take between 31 and 200 years for any energy savings to make the installation costs worthwhile at today’s prices.
In terms of carbon savings, the biomass boiler came out best, but at an increased running cost to the consumer. Users who switched from oil to an air source heat pump would actually be increasing their carbon emissions. The ground source heat pump represented the best option, with potential CO2 savings of 1150kg per annum.
The joint administrators of Petroplus Refining & Marketing have published their first progress report on the administration, which illustrates the depth of the financial challenges faced in continuing to operate the Coryton refinery.
The report provides creditors with a detailed description of progress that has been made in the six months since the appointment of the administrators.
Trading losses from refining during the six-month period of administration are currently estimated at $22m-$31m, on sales of some $347m. Of this loss, some $20m relates to capital expenditure incurred and written off in the period.
The report also states that an extensive exercise to obtain the best value for creditors from the sale of Coryton found that offers to run the site as a refinery were materially lower than for an alternative use.
It is currently estimated that the net funds available for distribution to unsecured creditors may be in the order of $102m-$135m. Gross realisations from the assets of the company are projected to be $199m-$209m.
Steven Pearson, joint administrator and PwC partner, said: “This has been an exceptionally difficult administration. The information we have published today illustrates the scale of financial and operational challenges we faced in operating the refinery for nearly six months.
“The unfortunate reality is that, despite rigorous cost control, the refinery incurred significant losses from operations between January and June. This high risk, low reward environment was the main driver in having to cease operations – put simply, we could not afford to incur the ongoing losses associated with continuing refining.”
DCC has reached agreement to acquire BP’s LPG distribution business in Britain. Completion of the acquisition is expected to take place at the end of September 2012.
The deal is worth approximately £40.5m, to be satisfied at completion, after the net tangible operating assets of the LPG business were valued at approximately £30m (€38m) on 31 December 2011.
The Bristol-based business currently supplies a wide range of industrial, commercial and domestic customers with an annual volume of approximately 87,000 tonnes of bulk and cylinder LPG. It has 116 staff and operates from a network of 13 locations throughout Britain with a fleet of 62 delivery vehicles. Haulage services are principally outsourced.
Flogas, DCC’s existing LPG arm in Britain, has annual sales volumes of approximately 190,000 tonnes.
Tommy Breen, DCC chief executive, said: “We have a successful track record in acquiring energy distribution businesses from the oil majors as they exit downstream activities. This transaction will enhance DCC’s position as the leading oil and LPG sales, marketing and distribution business in Britain.”
www.dcc.ie
Mabanaft has sought feedback from customers to gain a deeper appreciation of their wants, and to focus on developing services for further improvement.
The company recently conducted an online survey, and results found that, in addition to price, customer service, continuity of supply, accuracy of invoicing and efficiency of loading times were rated as being of key importance.
Mabanaft was delighted that almost all participants rated them as above average across all of these areas, with 95% rating their customer service as very good or excellent and more than eight out of ten marking continuity of supply, efficiency of loading times and accuracy of invoicing as very good or excellent. The company also achieved a resounding vote of confidence in the quality of advice and expertise that they provide to customers, with 86% saying they found it to be very good or excellent.
Stephen Rhodes, marketing manager, said: “I am extremely pleased with these results as they confirm that we are delivering on the things that matter most to our customers. I am also thrilled with some of the comments we received and proud of my team for delivering such high levels of service. We will now be looking to address any areas where customers feel there is room for improvement.”
www.mabanaft.co.uk
Jet is running a special sports and fitness promotion this summer, encouraging customers to enjoy a broad range of exciting activities. The campaign is set to run until October 31.
Vouchers will be handed out to customers through the Jet Distributor network, and redeemable on the Jet-Local.co.uk website. One voucher will be distributed per transaction until October 31, set to be redeemable up to September 2013.
During an Olympic summer when the country has embraced a wide variety of sports, the Jet Active promotion includes deals on swimming, golf, and martial arts. Free lessons and discounts are also available on experiences such as paintballing and holiday club visits.
Additionally, in partnership with Blockbuster, customers will be offered a five week trial of the two DVD Unlimited plan, so they can look forward to a film on the sofa after a busy day of sports.
People taking advantage of the deal will be encouraged to try a variety of experiences, with customers only allowed to redeem their voucher once at a specific venue.
www.jetactive.co.uk
Supporting customers and adding value is MabaLIVE’s online price information and fuel ordering service
This is a time of unprecedented change for the downstream sector, with numerous factors conspiring to make this one of the toughest operating environments ever seen, says Mabanaft.
“With over capacity and falling consumer demand throughout Europe prompting international oil companies to focus on upstream sectors, re-organisation and disinvestment has resulted, not least in refining and marketing in the UK,” said marketing manager, Stephen Rhodes. Increased wholesale prices
“Downstream fuel prices remain high, with governments looking to raise revenues through fuel duties and other fiscal measures. And investors are looking to place available funds into safe, secure commodities – such as oil – resulting in increased wholesale prices. Add to this fluctuating exchange rates, inflationary factors, political unrest in the Middle East, recession within the Eurozone, and a global economic slowdown – all are bolstering volatility,” added Stephen.
Mabanaft has found that the current economic climate, combined with the high price of oil, has resulted in limited credit availability for all industry participants. Suppliers are operating on lower stock holdings, which have the potential to impact on the prevailing cost of compulsory stock, leading to increased prices for consumers.
“And the volatility of the biofuels blending markets, coupled with rigorous audit and sustainability requirements, are adding yet more costs to doing business,” adds Stephen.How is Mabanaft countering such difficult circumstances?
Vast experience, and a thorough understanding of the fuel oil distribution market means that Mabanaft can offer valuable support and advice on purchasing fuel.
“Innovation is key to delivering added and new value, and MabaLIVE, our online price information and fuel ordering service, is a good example of this,” says Stephen. “It provides immediate pricing information, enabling customers to make informed purchasing decisions and order fuel quickly and easily.”
Mabanaft is also exploring new market sectors and ways of working with customers to meet specific requirements. This includes developing new methods of delivering fuel to market, as well as improved products.Building relationships and meeting customer expectations
“We’re committed to understanding what our customers want – and we go out of our way to deliver. We are currently implementing a feedback survey to gain a deeper understanding of exactly what our customers value, and to ensure that we are meeting expectations.
“Credit lines and pricing structures are of critical importance in the current environment and Mabanaft is providing a range of options to enable customers to minimise price risk and exposure to price volatility.
“We support customers,” adds Stephen. “And this includes delivering the basics accurately and efficiently – competitive pricing, accurate administration and a robust and reliable operational service.” www.mabalive.com
Further Reading
The new Cardiff facility is rail fed enabling more efficient fuel movements between terminals
Despite a declining market, Greenergy has continued its rapid growth over the past 12 months – supplying 10.9 billion litres of fuel during the company’s financial year, ending April 12th – one billion litres more than the previous year, an increase of more than 10%.
“We’ve experienced growth in all areas of our business and in all locations,” Greenergy chief executive, Andrew Owens, told Fuel Oil News. “In particular, we’ve seen strong growth in diesel sales at Teesside following the administration of Petroplus, which brought their exit from nearby storage terminals. We’ve also experienced increased sales volumes for both petrol and diesel in the south east due to interruption of supply at Coryton. Operationally the business has coped well with this additional demand.”
______________________________________________________________________________
The demanding market conditions of the past 12 months have presented Prax Petroleum with a series of challenges and opportunities. However, the Surrey-based independent oil importer and supplier of automotive and industrial fuels company is “very much on track” to meet its ambitious growth targets.
Sales director, Neil Robertson, explains: “Prax Petroleum has continued to develop its business, making significant gains in contracted and spot sales. The uncertainty surrounding our close neighbour, Coryton refinery, has undoubtedly presented all Thames-based wholesalers with further opportunities.
“Changes to the Renewable Transport Fuels Obligation (RTFO) legislation have presented the market with more challenges and opportunities, and there is still a degree of uncertainty as to how this will affect future strategy. We are very proud to have been the only company in the country to have met the government objective of over 80% of fuel supplied meeting a qualified environmental standard (Year 3 RTFO Report published by the Department of Transport). We have always been mindful of our environmental responsibilities and our efforts in this regard are increasingly appreciated by our customers.”
Upgrades and improvements
Prax has completed several upgrades and improvements to its loading racks during the last 12 months, which have resulted in significantly faster loading times – warmly welcomed by the company’s ex-rack customers, says Neil.
“As a result of customer demand, we are now exploring opportunities to expand our supply coverage and bring the benefits that our customers in the south east have enjoyed to other parts of the country.
“Our strategy remains focused on being able to offer our customers access to imported fuels with the lowest possible associated costs. By keeping overheads low, with no compromise on quality and safety processes, and listening to what our customers want, we are making very good progress towards meeting that objective. We shall, of course, keep Fuel Oils News readers duly apprised of developments!” concludes Neil.
www.praxpetroleum.com
Harvest Energy provides more than 10% of the country’s motorfuel requirements – equivalent to more than 80 million litres every week to its ever growing customer base.
The company is part of the Blue Ocean group of companies, one of Europe’s largest independent suppliers and blenders of motor fuels, with operations in the UK, Holland, Germany, France and the Baltic.
In the UK, the company is a major supplier of diesel, 10 ppm gasoil, and petrols from northern Scotland to Cornwall, making more than 250 deliveries each day. Customers include oil companies, supermarkets, distributors, logistics providers, bus and rail operators, utilities companies, and a wide range of public sector bodies including Royal Mail, MoD and more than 60 local authorities. Harvest is also one of the largest suppliers into the Keyfuels and UK fuels bunker networks.
More retail filling stations
The company is one of Britain’s fastest growing fuel brands, and now supplies more than 100 retail filling stations nationally, most of which are under the distinctive Harvest Energy brand.
Since April, Harvest has taken on the distillate storage facilities at Seal Sands on Teesside, complementing its existing facilities in Grangemouth and West Thurrock, and is actively looking to expand its sales of diesel and 10 ppm gasoil in this area.
“With competitive prices, reliable supply, and excellent service on both a contracted and spot basis, collected or delivered-in, and now with a full vendor managed inventory solution, Harvest Energy is well-placed to expand its portfolio of customers,” says the company.
www.harvestenergy.co.uk
World Fuel Services Corporation is a global leader in fuel logistics, specialising in the marketing, sale and distribution of aviation, marine, and land fuel products and related services. Through its global team of local professionals, it offers single supplier convenience: competitive product pricing, trade credit availability, price risk management, logistical support, fuel quality control and fuel procurement outsourcing.
In the UK, World Fuel Services supplies refined petroleum products, alternative fuels and related services to industrial, commercial and agricultural consumers. World Fuel Services aims to provide an alternative to the traditional fuel suppliers by offering risk management services and alternative pricing options along with the supply of fuel. It supplies both regular commercial grades of fuel and speciality fuels via a network of locations throughout England and Scotland.
Speciality fuels are sold under the Henty brand. These products, which include Furnaceflame Industrial Gasoil, are designed to meet specific industrial applications as competitive alternatives to kerosene, gasoil and fuel oil.
A greater number of supply options
World Fuel Services has expanded its supply base in order to provide its services across a broader geography. Peterhead was added to the list in late 2011. Immingham and Midlands supply options have been added in 2012.
Further supply expansion is under way, with a £10+m investment at itsFalmouthterminal, and a renewed commitment at Simon Storage in North Shields, where the rack loading facilities are being upgraded.
In these times of uncertainty and risk, World Fuel Services aims to provide both physical supply, pricing alternatives and price risk management strategies that others do not offer. Contact the land team on 0207 808 5137.
www.wfscorp.com
A captain’s eye view of the M. T. Lerrix
It was a day of celebration on the waterfront of Hull at the end of May when members of the Rix family, and their colleagues from heating oil and commercial fuels specialists, J.R. Rix & Sons, and sister company, Maritime Bunkering, witnessed the launch of the latest vessel to join the Rix Shipping tanker fleet.
As maritime tradition dictates, a bottle of champagne was smashed against the distinctive green hull of the 1254 ton ship as she was named the M.T. Lerrix by Lucinda Rix, daughter of company chairman, John Rix. The name “Lerrix”, explained John, comes from Lucinda’s initials (Lucinda Emily Rix), coupled with the company convention of having the letters R,I,X, ending the six-letter name of all its ships.
Watching on, as special guests at the ceremony – held at the Dunston Shipyard at Hull’s William Wright Dock – were more than 70 customers, suppliers and employees of the company. Lord Haskins, chairman of the Humber Local Economic Partnership, responded to John Rix’s speech on behalf of the guests, congratulating his company on its continued success in a difficult economic climate.
The new ship – which will be used for bunkering along the east coast of the UK, from Leithto Harwich – has an overall capacity for 1100 tons of oil in four tanks. The 53-metre-long vessel is equipped with two Blackmer rotary vein pumps, each capable of delivering 238 cubic metres of fuel per hour, and one Blackmer rotary vein pump with a capacity of 63m3 per hour.Maritime tradition
New sales coordinator, Pio Ronan
Carbery Plastics has confirmed the appointment of Pio Ronan as sales coordinator. Pio has a strong background in sales and customer service and will be responsible for assisting in the development of Carbery sales in Munster and Connacht.
Pio said: “I look forward to working closely with customers across Munster and Connacht to grow sales of Carbery products in these areas. Carbery is a well regarded brand across Ireland, with a deserved reputation for the development, manufacture and supply of quality products.”
Sales manager Pat Daly said: “Pio will play an important role in the development of our business, as we launch significant new additions in the Carbery range, including our all-new 1000 litres capacity Superslim Bunded Heating Oil Tank.”
Carbery has also confirmed the appointment of Jill Turner to the position of sales office manager. A long-serving employee of Carbery, Jill is already known to customers across Ireland and the UK. In her new role, Jill will be responsible for coordinating the provision of Head Office support to customers in all product sectors and geographic markets.”
nextgen takes place at Stoneleigh Park in Warwickshire from 10-11 October, and together with ebec, the UK’s largest bioenergy show, and microgen, a show serving small-scale (sub-50kW) power producers, has become the UK’s fastest growing event showcasing a full range of emerging renewable energy technologies.
With the trio of events combined at one location, nextgen makes it easier for visitors to retrieve relevant information and to establish business connections. Installers, engineers and renewable energy producers, will mingle alongside managers in the public sector dealing with energy efficiency, farmers and land owners or supervisors managing food processing and waste.
Besides hosting a major international exhibition, nextgen features a multi-stream conference which will take place in six CPD accredited seminar theatres.
For more information and to register for your free place visit www.ebec.co.uk
Former conquerors of Kilimanjaro, the Crown Oil team are now tackling their latest challenge
Burnley based fuel and lubricants distributor Samuel Cooke has been ‘rescued from the administrator’, after the acquisition of key assets by Crown Oil.
Crown Group managing director, Matt Greensmith, explained, “We will continue to trade under the Samuel Cooke name and we can assure existing customers a flawless continuity of service. The Crown and Cooke businesses have many similarities, both being long established, independent and family owned firms that have built sound reputations based on high and consistent levels of service.”
A handful of Cooke’s former employees have already found employment with Crown Oil who are hopeful that there will be more opportunities as the business is consolidated. Staff at Cooke’s had previously been informed that all jobs would be lost as the company went into administration.
Crown Oil general manager, Mark Andrews, said: “We will offer same day or next day emergency deliveries where required with programmed fuel delivery for larger customers.”
Cooke customers will have access to a wider range of advanced low carbon fuels and speciality lubricants. In line with Crown’s environmental commitment all Samuel Cooke’s delivery mileage by road tankers will now be fully carbon offset.http://www.crownoiluk.com/
Most Read