Amey and British Gas (BG) have received an award for the best contributor to the Home Office Corporate Social Responsibility (CSR) agenda, for a pioneering energy management agreement which was implemented to reduce the department’s carbon footprint by 1,200 tonnes.
Working in a three-way partnership, Amey, British Gas and the Home Office devised an innovative Gain Share contract – whereby both companies are paid according to how much money they save the Home Office. It was the first time this agreement had been used in Central Government,
In eight months, the team reduced the Home Office’s energy bills by £212,000, prevented 1,200 tonnes of carbon from entering the atmosphere and is on track to save the Department £1.3 million over three years. As a result of that success, the Home Office is rolling out energy management contracts across 90 per cent of its estate.
Home Office Group Commercial Director Bill Crothers awarded plaques to Amey and British Gas during a special ceremony in Whitehall.
He said: “The Home Office is playing its full part in the government's drive to cut the budget deficit.
”We are always looking for ways to improve our procurement procedures, and these suppliers have worked extremely hard to provide the public with value for money.”
Home Office Permanent Secretary Helen Ghosh said: “Good relationships with our suppliers have never been more important. This conference is a chance to recognise the valuable contributions from suppliers of all sizes and share best practice to ensure we continue to drive down costs.
“We have achieved great things but there are several years ahead where we must continue to deliver the savings we need. The key word to that is innovation - and our award winners today exemplify that.”
Gillian Duggan is Managing Director of Amey’s Built Environment division, which delivers facilities management services at 340 Home Office-managed properties in London and the South East. She said: “Amey is focused on delivering innovative ideas which reduce our customers’ costs and carbon footprint. We are delighted that the Home Office has recognised this commitment.”
The Home Office has now adopted a form of energy performance contracting in its FM contracts, whereby the contractor is entitled to a share of financial savings achieved under the contract. This work was supported by the Cabinet Office which is looking to roll this approach out more widely.
The Gain Share energy management contract runs in parallel to Amey’s existing FM contract. For three years, Amey – a leading public services provider - and British Gas, which specialises in energy management, assess the condition of existing equipment; invest in new energy systems and encourage users to reduce consumption. The system allows private companies to invest in new technologies for the Home Office, without government having to make any capital expenditure.