CLIENT OVERVIEW 

New Theatre Royal is a Grade II* listed Victorian theatre located in the heart of Portsmouth, England. Established in 1856 and later redesigned by renowned architects Charles J. Phipps and Frank Matcham, it has hosted numerous iconic performers. New Theatre Royal’s refurbishment completed in 2015, the theatre continues to serve as a vibrant cultural hub, offering a diverse programme of drama, music, comedy, and community events.

FACED CHALLENGES

New Theatre Royal (NTR) faced a highly complex energy challenge due to a shared tenancy arrangement. The energy supply had historically been contracted by an unrelated entity with different energy requirements, leaving NTR tied to an unsuitable and costly energy contract. The contract included a daily standing charge exceeding £36/day, driven by a 600 KVA capacity allowance—a level of capacity needed by the former tenant but unnecessary for NTR.

The contractual complexity was driven by two tenants in a shared building, with very different energy requirements. As a small charity, NTR urgently needed to reduce costs while maintaining a fair and transparent relationship with the shared tenant.

OUR SOLUTION

Commercial Energy Solutions (CES) took a multi-step approach to resolve New Theatre Royal’s faced challenges:

1. Change of Tenancy (COT): 

CES first completed a complex COT process to ensure that NTR could secure an appropriate energy contract in its name.

2. Optimised Energy Contract:

CES secured a competitive long-term contract that removed the high fixed daily standing charge and incorporated Distribution Use of System (DUoS) and Transmission Use of System (TNUoS) charges. This allowed NTR to benefit from falling network costs starting from April 2025.

3. Capacity Reduction:

Once the supply was correctly split, CES reduced the contracted capacity from 600 KVA to 79 KVA, aligning it with NTR’s actual requirements.

4. TCR Banding Adjustment:

CES successfully challenged the Targeted Charging Review (TCR) banding, resulting in a move from Band 4 to Band 1 for NTR, which significantly reduced network charges.

5. Sub-Billing Implementation:

To ensure fairness and transparency with the shared tenant, CES implemented an accurate sub-billing system, apportioning energy costs based on actual usage.

6. Ongoing Consultancy:

CES continues to provide NTR with a range of services, including:

• Flexible and fixed energy procurement
• Water retail margin reviews
• Invoice validation
• Data collection and access
• Renewable energy assessments (including REGO and green supplier reviews)
• Supplier dispute resolution
• Energy budgets and accrual support
• Reviews of energy reduction solutions such as solar, wind, voltage optimisation, and heat pumps.

OUTCOME

CES’s intervention delivered a total contract saving estimated at £36,254 for New Theatre Royal.

By resolving the inherited contractual issues, reducing unnecessary capacity charges, and ensuring accurate sub-billing, CES has helped NTR regain control of its energy costs. This outcome has been crucial in maintaining the charity’s financial stability while fostering a positive relationship with the shared tenant.

TESTIMONIAL

“I would like to thank Adam and the CES team for their professionalism and expertise in utility management. Their work has made a significant difference to our organisation, delivering valuable savings and giving us much-needed clarity and control over our energy costs. As a charity, this has been essential in helping us maintain financial stability.”

Amanda Hart

Head of Finance

New Theatre Royal