An Energy Service Company is a company whose main mandate is to cut down on the costs that the consumers of energy use while using energy by starting up finance projects that improve this efficiency. Therefore, ESCO helps other firms save energy, and the company’s compensation is mostly determined by the amount of energy saved. If Rom machines are in partnership with ESCO, it would be helped to save energy in their machinery Industry.
In addition, the company would not be involved in installing the energy-saving projects, which require a large amount of capital to install and run, and hence the company would not incur any cost.
The company would only incur a cost that is relative to the energy saved, and hence its profits would increase due to a decrease in the production cost.