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Two Major Health Clubs Trim Energy Costs with an Effective Energy Supply Management Strategy

When it comes to your health, to get in shape you have to watch your consumption and commit to a plan. The same can be said for your energy costs. When two health club companies based in the Northeast consulted Enel X for help trimming their energy expenses and improving profitability, we asked them to take a hard look at their energy bill. It was like getting on the scale and being shocked by the number. The costs needed to come down. The question was how. Enel X helped the companies reduce energy consumption, control power rates, and take advantage of efficiency incentives to become energy fit and stay that way.


Success Story #1: Weymouth Club

Several years ago, the Weymouth Club, a 100,000 sq ft multi-recreational club outside Boston, signed an electricity contract at above-market rates. This wasn’t uncommon at the time. Deregulation made it easy to become overwhelmed by the complexities of price volatility and a multitude of suppliers.


As their over-priced contract was due to expire, the club looked for alternatives to their 2M kilowatt-hours (kWh) annual electricity load. Enel X volunteered to be their personal trainer. After analyzing the club’s power usage, Enel X secured seven suppliers to compete in an online sealed-bid auction for a straightforward comparison of one-, two-, and three-year offers. As a result, the Weymouth Club reduced their electricity supply cost by 50% and signed a three-year deal to save more than $400,000 over the term.


Success Story #2: Healthtrax

Healthtrax, a chain of 19 multi-recreational wellness clubs, faced a similar situation but on a much larger scale. The company was consuming 17M kWh of electricity per year, due in part to outdated, inefficient lighting and mechanical systems in many of its clubs. When the CEO saw an opportunity to whip the company’s energy program into shape with Enel X’s help, he took it.


Together, Enel X and Healthtrax developed a customized energy plan to stop Healthtrax from paying above-market rates by switching electricity suppliers and by participating in generous utility incentive programs.


Enel X recruited eight suppliers to bid on 19 RFPs through online open- and sealed-bid auctions. Enel X also drove a comprehensive energy efficiency project that allowed the company to buy $1M in updated equipment through utility-sponsored programs. In addition, on-bill financing allowed Healthtrax to fund the initiative with a cash outlay of $25,000. With the power of lower rates and reduced consumption, the club’s energy fitness index is off the charts, with more than $1M of energy cost savings expected over the next four years.


Helping Health Club Companies Get Energy Fit

Like many businesses, those in the health, fitness, and recreation industry have a high need to control utility costs. However, it can be challenging to make the right energy-sourcing decisions, given how complicated energy has become following deregulation. Enel X can help you answer questions like:

  • Which suppliers are reputable?
  • What is a reasonable price target?
  • What is the right trade-off between term and price?
  • Is it better to go with fixed or index pricing?
  • Can I roll the cost of the efficiency improvements into my monthly bill?