ENERGY MANAGEMENT


PLAN FOR ENERGY SAVINGS - WITH FRAMEWORKS


Hard-pressed FMs and estates managers are all too familiar with the demand from senior management: save money on gas and electricity supplies. But many


bright ideas never see the light of day. This could either be because the department hasn’t the procurement know-how or these initiatives ask too much of colleagues. ‘Can this situation ever be changed?’ asks Sally-Ann Kempin of ESPO.


The good news is that public sector FMs can take a planned approach, getting a grip on energy costs and planning savings,


even when budgets and resources are tight. They can achieve this with a public sector invention that’s something of a ‘best kept secret’: energy supply frameworks.


FAIR PRICES Gas and electricity supply


frameworks from publicly-owned 38 | TOMORROW’S FM


professional buying organisations (PBOs) are a simpler alternative to organising direct supplies. Frameworks are operated by PBOs whose ethos is to optimise buying power across their customer base and return value to the buyer.


Frameworks are pre-agreed and guarantee fair prices, typically over three years. Instead of ‘let and forget’ attitudes to procurement, leading to buyers being locked into high price deals, buyers can plan ahead since PBOs’ frameworks incorporate annual


price reviews, based on a new delivered price each April.


KNOW THE RISKS Gas and electricity frameworks


help reduce risk to FMs and property managers because there is transparency of price and supply arrangements. While it’s not surprising for public bodies to outsource buying to energy brokers, using frameworks will remove the potential for confusion or disputes over the small print. Some brokers will want to make their money by


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