The Energy and utilities sector has seen several changes both in terms of players and priorities. These call for innovations, also in the billing space.
ESCos: what are Energy Service Companies?
ESCos, as their name suggests, are companies that offer energy-related consultancy services, which can include implementing energy-efficiency and renewable energy projects, in particular to energy-intensive companies. ESCos guarantee energy savings and/or provision of the same level of energy service at lower cost. A performance guarantee can take several forms: it can revolve around the actual energy savings from a project, it can stipulate that energy savings will be sufficient to repay monthly debt service costs, or that the same level of energy service is provided more cheaply. Therefore the remuneration of ESCos is directly tied to the energy savings achieved, and they accept some degree of risk for the achievement of improved energy efficiency in a user’s facility and have their payment for the services delivered based (either in whole or at least in part) on the achievement of those energy efficiency improvements.[2]
ESCos, reliable partners of energy-intensive companies in managing complex contracts
As mentioned above, ESCos’ services are mainly targeted towards energy-intensive companies. In Italy, there are about 3,100 energy-intesive companies, that are mainly large and distributed principally across in the manufacturing sector, specifically in the steel, paper and also food industries.[3] These companies share a unique set of needs, especially when it comes to meeting environmental and energy efficiency goals and saving on energy consumption and costs.
As a result, ESCos typically deal with extremely complex custom contracts that are based on energy consumption profiles and specific production timelines that cover the unique KPIs set by the clients. In addition, as ESCos are usually renumerated based on performance, the billing process becomes extremely important and every detail counts.
Fincons’ youtiverse: contract management and billing made easy
Fincons Group’s youtiverse is the disruptive solution developed to meet real market needs and to innovate metering, billing and credit processes for the sale and distribution of electricity, gas, water and other value-added services, significantly reducing CAPEX and OPEX. This Cloud-based solution relies on Fincons’ Open Innovation platform and has proven to be flexible, interoperable and easily integrated with other systems already in use. youtiverse, that can be tailored to several business processes, provides business users with full visibility and enables first-hand data and rules management, significantly reducing management costs.
Within its youtiverse, Fincons recently added a billing module specifically designed to meet ESCos’ need to be supported in the active invoicing process. This innovative billing module was specifically designed to make the invoicing process faster and easier for ESCos, taking into account all variables of complex contracts, including KPIs and incentives that are unique to each energy-intensive company, reducing the potential for mistakes and optimising overall processes.
Contact us to find out more about our youtiverse!
[1] European Commission, European Energy Efficiency Platform, Energy Service Companies (ESCos)
[2] European Commission, European Energy Efficiency Platform, Energy Service Companies (ESCos)
[3] IBT Group, What are energy-intensive companies and what are their obligations?