EGS Launches an Integrated Three-Part Cost Reduction Model to Redesign Corporate Electricity Cost Structures

Since 2023, electricity unit prices have risen on one of the largest scales ever recorded, making electricity expenses a major and persistent share of annual costs, especially for manufacturers, logistics companies, and commercial facilities. Many companies have attempted to reduce costs, but single measures such as promoting energy-saving awareness, partially switching to LED lighting, or installing solar panels have had clear limits in delivering fundamental reductions. The more serious issue is that the structure of electricity costs itself has not been reviewed. Excessively high contracted capacity, inefficient operation of aging air-conditioning equipment, and lighting systems that have not fully shifted to LED all combine to make companies continue paying unnecessary costs every month. EGS Inc., headquartered in Shibuya-ku, Tokyo, began offering its “integrated three-part reduction model” on May 1 to directly address these structural issues. The company is also running a free energy diagnosis campaign. Rather than being a simple energy-saving measure, the model redesigns the underlying structure of electricity costs, drawing attention from the industry. The key feature of this model is that it implements three measures simultaneously rather than individually. Each measure creates synergies with the others, achieving a level of reduction that conventional single measures could not reach. First, EGS optimizes contracted capacity through the introduction of computer breakers. Many companies still set their contracted capacity based on the amount of electricity required by factories or stores during past peak periods, creating a gap with current actual demand. EGS’s computer breaker system controls electricity usage in real time and manages usage peaks. This can reduce basic charges, the fixed-cost portion of electricity bills, by up to 65%. Since basic charges generally account for 40% to 50% of total electricity costs, this has a major direct impact on corporate finances. Second, EGS improves air-conditioning efficiency by upgrading equipment to the latest inverter models. Air-conditioning systems introduced around 2010 are significantly less efficient in power consumption, measured by COP value, than current models. In manufacturing sites and warehouses, air conditioning often runs 24 hours a day and is one of the largest sources of electricity consumption. EGS provides comprehensive support for upgrading to the latest inverter-type air conditioners, reducing power consumption by around 40%. Reported cases show annual savings ranging from several million yen to more than 10 million yen, with payback periods typically within three to five years. Third, EGS supports a full transition to LED lighting. Although LED conversion is now common, large factories, warehouses, and logistics centers often still have old fluorescent lighting because the number of fixtures is enormous and individual replacement is difficult. EGS designs and installs LED lighting across entire facilities, reducing lighting power consumption by around 50%. The effect is especially significant in large facilities with long operating hours, enabling annual savings of more than 2 million yen per site. For a large manufacturing plant with annual electricity costs of around 20 million yen, EGS also presents a reduction simulation based on actual implementation cases, using realistic figures derived from real-world deployments. The model goes beyond economic cost reduction and strongly supports corporate sustainability management. Large factories can reduce CO2 emissions by several hundred tons per year. The model also contributes to GHG Protocol compliance by significantly reducing Scope 2 emissions from purchased electricity. These results can be used as quantitative disclosure indicators for ESG rating agencies and investors, while accelerating decarbonization declarations and carbon neutrality goals. In recent years, requests from business partners for supply chain emissions disclosure have increased rapidly, making Scope 2 reduction results directly linked to corporate competitiveness. EGS’s solution is a rare approach that achieves both cost reduction and environmental contribution. Traditionally, electricity cost reduction measures such as contract reviews, equipment upgrades, and energy-saving diagnoses were proposed separately by different specialist companies. This fragmented approach made it impossible to optimize the measures together or draw out the maximum effect. EGS consolidates expertise in power engineering, facility construction, and energy consulting within a single company. By handling everything from diagnosis and design to construction and operational follow-up, EGS provides a one-stop solution that maximizes synergies among the measures. The initial energy diagnosis is free and includes on-site surveys and simulations. Installation costs can be paid in installments or handled through leasing, making zero initial investment possible. EGS also provides post-installation operational support to maintain and continue reduction effects. The service is available nationwide and has a track record across factories, warehouses, commercial facilities, hospitals, hotels, and other industries. EGS Inc. is currently running a free energy diagnosis campaign. Specialist engineers will visit customer sites to simulate how much electricity costs can be reduced. Eligible businesses include manufacturers, logistics companies, commercial facilities, medical institutions, and hotels. The diagnosis includes analysis of electricity usage records, calculation of reduction potential, and investment payback simulations. The service is completely free, with no obligation to sign a contract after the diagnosis. Company name: EGS Inc. Location: 6F The City Sasazuka II, 2-7-9 Sasazuka, Shibuya-ku, Tokyo. Representative: President and CEO Koji Nozaki. Business activities: energy cost reduction consulting, electrical facility construction, and sales and installation of energy-saving equipment.