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Energy and utilities properties are the physical assets of the petroleum, oil, gas, renewables and utilities sectors. Many of these assets – for instance, power stations, refineries, wind farms, reservoirs, substations, pipelines, petrochemical plants and gas storage caverns – are unusual and require the services of a specialist property adviser.
Our clients within these sectors include BP, British Energy, Conoco Phillips, Dwr Cymru Welsh Water, Eon, Exxon, Shell, Scottish & Southern Energy, Scottish Power, Scottish Water, Total and Wales & West Utilities.
The operating costs of many of these properties are very high; we help minimise them by proactively reducing business rates costs. Testimony to our success is that we provide strategic advice to the Association of Electricity Producers and Energy Networks Association which filters our recommendations to its members.
The 2010 revaluation is fast approaching which will have significant implications for power and electricity, gas and water distribution companies. The Valuation Office Agency will be seeking to consult and discuss assessments with the industries during the course of 2008 and it is critical that companies take this opportunity to engage in the discussions in order to keep their business rates liabilities to a minimum, post April 2008. The electricity and gas regulator, Ofgem, has made clear that it expects to see full engagement from the companies in this process in order to consider the continuation of business rates as a non controllable cost. Our specialists in this sector understand the business issues associated with Regulation and provide an integrated service throughout England, Wales and Scotland.
Minimising costs goes beyond business rates, however. Within the first year of providing an asset management service to one major energy company, we identified over £5m of property savings. We also made their property management systems more efficient, handling time-consuming tasks such as licences for alterations, managing contractors and negotiating rent reviews.
Secure energy supply is one of the major economic issues facing the UK. Replacing aged plant with low carbon technology including nuclear, clean coal, gas and wind energy are just some of the challenges. Business rates will be a large cost affecting the financial feasibility of some of these schemes and our budgeting advice will be critical when undertaking financial modelling. Investment will also be required in existing plant which will create major opportunities for rates saving. However, our multi-disciplined teams can advise on acquisition of new sites, compulsory purchase powers and procedures and planning issues. As many of these properties are sensitive, they require delicate handling from sector experts.
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