Part One
ITEM NO.
REPORT OF THE STRATEGIC DIRECTOR OF CUSTOMER & SUPPORT SERVICES
TO THE: CUSTOMER & SUPPORT SERVICES LEAD MEMBER BRIEFING
On Monday, 3 July 2006
TITLE: ENERGY MANAGEMENT ACTIVITY MARCH - JUNE 2006
RECOMMENDATION: The Lead Member is asked to note the level of savings being
achieved and identified by the group.
EXECUTIVE SUMMARY: The purpose of this report is to inform the Lead Member of the
energy audit activity undertaken by the Audit & Risk Management Unit for the period March
to June 2006 inclusive.
BACKGROUND DOCUMENTS: None
(Available for public inspection)
ASSESSMENT OF RISK: Energy Audit activities form an integral part of the City
Council’s Risk Management Strategy aimed at giving assurance regarding the
management of the City Council’s key business risks.
SOURCE OF FUNDING: Existing revenue budget
COMMENTS OF THE STRATEGIC DIRECTOR OF CUSTOMER AND SUPPORT
SERVICES (or his representative):
1. LEGAL IMPLICATIONS
Customer & Support Services and City Solicitor
Provided by: Deputy Director of
2. FINANCIAL IMPLICATIONS
with Head of Finance
Provided by: Ongoing consultation
PROPERTY (if applicable): N/A
HUMAN RESOURCES (if applicable): N/A
CONTACT OFFICER:
Jim Gosney – Energy Manager
Tel: 0161 793 3472
Email: jim.gosney@salford.gov.uk
WARD(S) TO WHICH REPORT RELATE(S): N/A
KEY COUNCIL POLICIES: Environmental Strategy
DETAILS: See attached report
Energy Audit activities undertaken during the period March 2006 to June 2006 are
detailed as follows: 1.
ENERGY AUDITS
Implemented Energy Savings, through purchasing, tariff analysis and water
audits amount to £95,438.51 for the year 2005/2006 and £7,046.36 for
2006/2007 to date. Refunds for the amount of £204,821.14 for 2005/2006 and
£3,016.75 2006/2007 to date, have also been achieved and cheques from the
various suppliers are being received.
We are pleased to report that audits have been conducted at Ordsall Hall, Civic
Centre and Elmstead House.
A summary of the potential savings identified in these reports are detailed in
Appendix A.
2.
GAS PURCHASING
The Gas contract for all the council premises has now been completed. The
lowest tender for this contract was accepted at committee.
The contract will commence 1st June 2006 and will continue until 31st May 2008
and will produce annual costs of £2,389,547.
Unfortunately, there were a number of factors causing dramatic increases in
gas prices since we last negotiated the contract 2 years ago, not least the
uncertainty of oil prices. This is expected to continue for the foreseeable future
and therefore a 2 year contract was agreed.
It has been confirmed that further sites can be added to the contract at any
point over the next two years and also that electronic data interchange billing
can be provided to Salford City Council.
3.
GERSHON EFFICIENCIES
It was recently confirmed that we could claim energy and fuel efficiencies, in the
Gershon Efficiency programme. Even though there have been dramatic price
rises, energy savings can be claimed as long as we can show that our
consumption has reduced due to energy efficiency measures (e.g. not due to
closures, etc).
We have gathered the data for 2005/06 backward look on Gershon efficiencies.
This has shown that significant consumption and cost reductions have been
achieved through energy efficiency measures. A summary of these savings is
attached in Appendix B.
APPENDIX A
SUMMARY OF POTENTIAL SAVINGS
No Cost
Potential
Savings
Site Name
Ordsall Hall
Low Cost
Potential
Savings
£953
£23
Civic Centre
Elmstead House
£3,326
Totals
£4,279
High Cost
Potential
Savings
CO2
Emissions
£1,172
£2,148
22.01
£3,938
£453
-
£3,938
£3,779
-
£4,414
£1,172
£9,865
APPENDIX B
GERSHON EFFICIENCY SAVINGS
Consumption Savings
Consumption
Average pence Total Cost
Savings
per unit
saving
Electricity (kWh)
647189
5.18575
£33,561.60
Gas (kWh)
3756931
1.5997
£60,099.63
Water (m3)
13041
1.716
£22,378.36
£116,039.58
Cost Savings
Actual Agreed
Costs
Total
Potential
Savings
National
Average Costs
Saving
Electricity
(Large Sites)
£348,229.57
£417,875.48
£69,645.91
Electricity (Small
Sites)
£927,430.52
£1,088,154.00
£160,723.48
£230,369.39
0.49
22.50
tonnes