Home Office Rolls Out Pioneering Energy Contracts Developed by Amey and British Gas

06 July 2011
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Government department set to save £1.3 million through Gain Share scheme.

The Home Office is rolling out energy management contracts pioneered by Amey and British Gas Business (BGB) across 90 per cent of its estate, after the two companies saved the department £212,000 in eight months.

Working in a three-way partnership, Amey, BGB and the Home Office developed a ‘payment by results’ energy management contract to manage energy consumption across 350 Home Office-managed buildings in London and The South East. It was the first time the Gain Share method had been used for energy management in Central Government.

For three years, Amey and BGB assess the condition of existing equipment; invest in new energy systems and encourage users to reduce consumption. They are on track to save the Home Office more than £1.3 million and cut its carbon footprint by 15 per cent over the lifetime of the contract.

Based on that success, the Home Office is rolling out the system across 90 per cent of its estate.

It comes after the Prime Minister (TBC) announced that Government has achieved a 14 per cent reduction in emissions over the last year – exceeding the 10 per cent target he initially set when he aimed to make the ‘greenest ever government.’ The Home Office achieved even higher savings, reducing its carbon footprint by 17.6 per cent.

Helen Kilpatrick, Home Office Commercial and Financial Director General, said: “In the current economic climate we all need to find ways of working more smartly. This  contract is delivering real savings for the taxpayer while helping to protect the environment.

“In harnessing the best of private sector practice and bringing in fresh ideas we are delivering real change.”

Gillian Duggan, Managing Director of Amey’s Built Environment division, said: “Amey’s priority is finding innovations to help government reduce its deficit and lower emissions and we are extremely proud to be recognised as a role model for energy management within the FM sector.

“Our pioneering Gain Share contract shows how the public and private sector can work in partnership to achieve challenging efficiency targets. There is potential that other departments will follow the Home Office’s lead and consider using the Gain Share model to lower their energy bills.”

Mike Chessum, Head of Energy Services for British Gas Business added: “This ground breaking Gain Share energy management contract has allowed British Gas and Amey to provide an innovative solution to deliver transparent energy, carbon and cost savings to the Home Office.

“Our partnership accepts risk on both the energy management and technology investments made on the Home Office estate because we are paid according to the savings measured, verified and agreed with our client.

“The payment on results contract has demonstrated how a cohesive team of energy experts, FM provider and client can operate as one to achieve outstanding energy savings and excellent value for money.”

Amey provides a wide range of services across the Whitehall properties, including catering, cleaning, grounds maintenance, security, project management, pest control, porterage, reception and mechanical and electrical services.

Through this work, Amey realised the Home Office could make further efficiencies by improving the management of its energy consumption. It partnered up with BGB Which specialises in maximising the efficiency of buildings and devised an innovative Gain Share energy management contract.

Using this system, the team has already saved 1,200 tonnes of CO2 – equivalent to that absorbed by 1,200 trees in one year.

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