Saving Gold Coins: Video Game Developer Unlocks £300k in Energy Procurement Savings

Background

Double Eleven is a full-service video game developer and publisher based in the North East of England. The company employs over 400 people and has collaborated on some of the gaming industry’s most renowned titles including Red Dead Redemption, LittleBigPlanet, Minecraft Dungeons and Lego Harry Potter.

Recently, the company has undergone significant expansion, increasing its workforce by more than 250 per cent since 2020. To accommodate this growth, the company has relocated to ‘Boho X’ – its landmark, state-of-the-art seven-story headquarters based in the Tees Valley. The company subsequently enlisted the expertise of Big Energy Group for energy procurement advice.

Challenge

Upon reviewing the meter details and supply arrangements for the building, it was identified that the Change of Tenancy documentation had not yet been fully processed, which resulted in Double Eleven being placed on higher, out-of-contract rates. These rates were notably above the average prices available in the wholesale market at that time.

Additionally, the existing contract included a passthrough element, which meant the business could experience fluctuations in non-commodity costs. To address these challenges, we worked closely with our supplier network to ensure the Change of Tenancy paperwork was swiftly completed, enabling Double Eleven to review their options and secure a more competitive contract.

Once we had gathered a thorough understanding of Double Eleven’s energy needs, their risk profile and overall goals, we recommended a fixed procurement strategy which would allow the company to move away from expensive out of contract rates and take a position in the market immediately to benefit from favourable market conditions.

Solution

In the Spring of 2024, Big Energy Group locked in a 100 per cent renewable fixed price supply contract for Double Eleven. We recommended that the company opt for an 18-month term, as this incorporated the ‘warmer months’ when wholesale prices were lower and would give a lower average price across the contractual term versus a 12-month contract.

This resulted in significant savings for Double Eleven: electricity costs fell by more than 260 per cent yielding contractual savings exceeding £310,000 from an initial spend of over £505,000 with their previous supplier. As the company opted for a fixed price supply contract, the company would also benefit from greater budget certainty over the contractual period.  

These savings were further compounded by the timing of contract lock-in. When conditions in the Middle East worsened, this ensured the company was protected from market exposure. Instead of paying an escalating 33.08 per kWh, Double Eleven kept paying an average of 18.19p per kWh and avoided £12,068.9 in additional costs during the volatile period.

Testimonial ‍

“Big Energy Group are not only really easy to deal with, they have a brilliant trade desk that has enabled us to stay resilient and make savings during a volatile procurement period.”  
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- M. Harris, Facilities Manager at Double Eleven

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