Together London authorities spend ~£450m p.a. on energy (electricity and gas) and £11m p.a. on water. Resourcing these essential supplies and getting best value remains a commercial and technical challenge for public authorities. London Energy Project’s mission is for all authorities to achieve greater benefits more quickly and with reduced risk than if acting alone or in small groups, now and in future. The LEP’s objective is:
- Stronger Together (Collaboration)
- Cheaper (Savings)
- Better (Commercial & Innovative)
- Faster (Efficiencies)
The energy and water markets are experiencing substantial change (regulatory change and increasing pressures, new entrants, technology-led innovation, greener generation mix, reduced profits) combined with increased security of supply concerns, more volatile commodity prices and sustained rising network charges.Acting together, we can achieve better value and also deliver social and environmental benefits. If we do nothing, the cost of our energy and water will simply go up.We need to change our energy and water management practice and approach to the market.
“We need to cut the time we spend on problem resolution so we’re spending more time on the bigger picture”
London Borough of Ealing
Shared Projects and Support
The London Energy Project uses authorities’ combined spending power to keep energy/water affordable, minimise risk, reduce procurement/contract operation/back-office costs and achieve better commercial outcomes. Suppliers tell us that the LEP grouping is attractive and prestigious. Our Shared Projects and Support Programme to 2020 is designed directly in response to member authorities’ concerns and business priorities. It supports authority in-house programmes and shared service/collaboration initiatives and includes:
- An authority focussed water retail contract for all LEP authorities from 2018 up to 2022 to deliver a low-cost/low-resource route to compliance (efficient use of your staff resources) & quality value for money services
- New contracts for energy from 2020-2024 that control costs and innovate on many levels - from complex commodity trading and alternative commercial structuring arrangements to efficient back-office operations, providing certified green energy at no additional cost, or supporting and paying more for onsite generation
- Independent Price Benchmarking of your energy contract(s) so you can select risk strategies that meet your needs, be sure you are getting value for money from your current buying organisation, and take action if you are not
- Carbon Reduction and Compliance Support services and audits, so that you are able to reduce risk/manage more efficiently
- Back-office efficiency and cost control: The LEP Team works with authorities and suppliers to implement more efficient transaction processes that work for both parties and support authority business transformation
- Ongoing joint procurement and contract management of high-quality expert and technical services to give authorities appropriate assurance, compliance and business analytics support within their LEP membership
- Tactical supplier management support for individual authorities (1) to achieve optimum value for money and reduce price risk from existing under-performing contracts; (2) to manage corporate financial/reputational risk from major supplier issues, such as billing failures
- Unmetered Supplies Review service - Save money and reduce risk: Designed to assess how authorities can best manage the complete UMS end to end process, from physical ‘on street’ work, through updating inventories, to processing and paying energy bills. Saving authorities an average of £50,000 per year
- New tools, templates and guidance documents, resources, workshops, events, peer-to-peer working and networking opportunities.
How we work
The LEP’s comprehensive programme of stakeholder engagement includes colleagues from the energy, finance, procurement, environment, estates and asset management teams in our Member Authorities. This ensures our projects, support and joint procurement meet all of our authorities’ needs, across all authority functions. We see this as a critical success factor.
We believe there is still much to do and significant gains to make. We know there is Strength in numbers and Opportunities for Public Authorities working within the London Energy Project, and would like to extend the benefits of working together to authorities in the South and East of England. To find out how to be become an LEP member, contact us at: LondonEnergyProject@haringey.gov.uk or call 020 8489 1102.