LCE Local Government Energy Procurement Action Plan

1
LCE Local Government Energy Procurement Action
Plan

• Michael Wood
• Head of Procurement, Haringey Council Project
  Director
• 18 April 2007

2
LCE Energy Project Implementation Stage

• Partners
• London Boroughs Energy Group
• London Contracts and Supplies Group
• Society of London Treasurers
• Office of Government Commerce
• energywatch

3
LCE Energy Project Timetable against Gas Price
May 2006 National energy Procurement Action
Group (PAG) formed
Nov 2005 OGC Energy Efficiency Team formed
Oct 2006 Pro5 group of consortia formed
July-Nov 2005 Data collected for LCE Energy
Procurement Review
Sept 2006 Project Board for implementation stage
formed
March 2006 Joint LCE and SECE Energy Procurement
report published
Feb 2007 Local Government Energy Procurement
Action Plan Published
October 2004 Bid submitted to LCE Management
Board for Energy Procurement Review Project
July 2004 LB Haringey asked How can we
demonstrate best value on our energy contracts?
4
Local Government Energy Procurement Action Plan

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

5
Local Government Energy Procurement Action Plan

• Section A contract information
• To provide a picture of the contract landscape
  across London

6
Local Government Energy Procurement Action Plan

• Section B Actionsand self assessment
• Data Quality
• Procurement
• Financial Management
• Monitoring Targeting
• Performance Indicators

7
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

8
Self Assessments

• Completed self assessments should be returned to
  the project office by
• 30th April 2007

9
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

10
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

11
Haringeys 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

12
Haringeys 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

13
Haringeys 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

14
Implementing the Action Plan

• Support
• Targeted workshops
• PAG How To Guide
• Peer support
• Case Studies

15
Implementing the Action Plan
Authority project contacts not supplied by

• 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

16
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

17
Project Website
18
Get involved.

• Join the steering group
• Submit case studies for website
• Volunteer to provide peer support to otherlocal
  authorities

19
Project Contact Details

• Project Manager
• Susie Owen LB Haringey
• 020 8489 3937
• Susie.Owen_at_haringey.gov.uk
• Website
• www.lcpe.gov.uk/energy

20
LCE Local Government Energy Procurement Action
Plan

• Question Answer Session
• 18 April 2007

21
LCE Local Government Energy Procurement Action
Plan

• Lunch
• 18 April 2007