LCE Local Government Energy Procurement Action Plan

Michael Wood Head of Procurement,

Haringey Council & Project Director

18 April 2007

LCE Energy Project: Implementation Stage

Partners London Boroughs Energy Group London Contracts and Supplies

Group Society of London Treasurers Office of Government Commerce energywatch

UK NBP Gas

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July 2004: LB Haringey asked – How can we demonstrate best value on our energy contracts?

October 2004: Bid submitted to LCE Management Board for Energy Procurement Review Project

July-Nov 2005: Data collected for LCE Energy Procurement Review

March 2006: Joint LCE and SECE Energy Procurement report published

Sept 2006: Project Board for implementation stage formed

Nov 2005: OGC Energy Efficiency Team formed

Oct 2006: Pro5 group of consortia formed

May 2006: National energy Procurement Action Group (PAG) formed

Feb 2007: Local Government Energy Procurement Action Plan Published

LCE Energy Project: Timetable against Gas Price

Local Government Energy Procurement Action Plan

Overview

Designed to help authorities identify the areas where they need to improve

Local Government Energy Procurement Action Plan

Section A – contract information

To provide a picture of the contract landscape across London

Local Government Energy Procurement Action Plan

Section B – Actionsand self assessment Data Quality

Procurement

Financial Management

Monitoring & Targeting

Performance Indicators

Local Government Energy Procurement Action Plan

Section C – Questionsfor authorities

To help the project team target resource effectively

To identify opportunities for peer support across London

Self Assessments

Completed self assessments should be returned to the project office by:

30th April 2007

Why self assess?

To enable you to identify areas requiring improvement within your authority

Returning the completed self assessment will allow the project board to assess the overall picture within London, identifying the areas of need and target resource accordingly

The self assessment aspect of the action plan WILL NOT be used to create league tables, but rather to target resource and support across the course of the project

Programme Management

The project office at Haringey will monitor progress across the course of the project

March ’06 (energy review report published) March ’07 (action plan published) Sept ’07 (mid way through implementation) March ’08 (target end date for project)

The London average for each action will be published after each self assessment, so authorities can measure their progress

Haringey’s Experience

March 2006 Bottom quartile in the energy procurement

review report Traditional fixed price tenders 1200 invoices processed manually each

month No interface between bills and financial

systems Internal recharges processed manually Only 10% of NHH electricity bills checked

Haringey’s Experience

March 2007 Managed flexible contracts Over 90% invoices processed electronically

via EDI & interfaced with financial system (SAP) for payment

Internal recharges created automatically by TEAM Bureau and sent to services

Transparency of billing queries 100% bills checked by bulk bill checker

using parameters set by Haringey

Haringey’s Experience

The benefits: Projected savings for this year

£320,000 on billing administration and procurement strategy

Next steps Monitoring & Targeting Data quality – meter reading project Water billing and management

Implementing the Action Plan

Support Targeted workshops PAG How To Guide Peer support Case Studies

Implementing the Action Plan

Barking & Dagenham Brent Bromley Croydon Enfield Greenwich Hackney Hammersmith &

Fulham Harrow Hounslow

Islington Kensington & Chelsea Kingston upon

Thames Lambeth Newham Redbridge Sutton Waltham Forest Wandsworth

Authority project contacts not supplied by:

Project Website

www.lcpe.gov.uk/energy Information about the project Download copies of reports Action Plan FAQs Will contain case studies and

best practice guides

Project Website

Get involved….

Join the steering group Submit case studies for

website Volunteer to provide

peer support to otherlocal authorities

Project Contact Details

Project Manager Susie Owen – LB Haringey

020 8489 3937 Susie.Owen@haringey.gov.uk

Website www.lcpe.gov.uk/energy

LCE Local Government Energy Procurement Action Plan

Question & Answer Session

18 April 2007

LCE Local Government Energy Procurement Action Plan

Lunch

18 April 2007