Vayu Energy signs new gas supply deal with C&C
1 May 2015 | 0
Irish gas supplier Vayu Energy has signed a new deal with C&C Group 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 Vayu Energy.
The deal announced today provides C&C 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.
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 said: “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 says that the energy market is undergoing a fundamental change with businesses seeking more effective ways to procure and manage their energy . “Energy services based in the cloud is the future, and Vayu are at the forefront of this change,” he said.
Valued at over £7 billion per annum, the UK’s business gas sector is almost ten times the size of Ireland’s, offering significant growth potential for Vayu.