Southampton City Council
Energy Procurement Changes Seminar
2nd October 2014
Energy Procurement Overview
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SCC Procure £10 million of gas and electricity per annum - £5
million for commercial buildings – including £2.4 million in schools
Kent Laser (part of Kent County Council) contracted to procure
our energy to 2016
SCC pays Laser to:
 Buy our energy
 Pre – October
 Manage our energy invoicing (Fully Managed Service)
 Validation and query management
Npower – electricity
Total Gas & Power - gas
Energy Procurement Moving Forward
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Business case made to bring the fully managed service in house –
commercial sites only
Energy team will deliver a FMS plus added value at no extra cost
Kent Laser (part of Kent County Council) will continue to procure
our energy to 2016
Changes take effect 1st October 2014.
Why we are making these changes
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Move from external expertise to internal expertise at no extra costs
Add value to the managed service – improved reporting and energy saving
identification
To continue the delivery of statutory and other functions that the energy team
deliver
Bring together all facets of energy to maximise savings and reduce administration
– one stop shop e.g. from meter issues to identifying energy savings
Energy Team Delivered £183,802 savings / cost avoidance in 2013-14 across schools and corporate buildings – we want to continue and increase
these savings
Managing Energy &
Water Costs
Forecast Non Housing Gas & Electricity Costs to 2020
Minimum Rise
£8,000,000
Average Rise
High Rise
£4,000,000
£2,000,000
Year
2020/21
2019/20
2018/19
2017/18
2016/17
2015/16
2014/15
2013/14
2012/13
2011/12
£0
2010/11
Total Cost
£6,000,000
What does this mean for you?
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We will be invoiced direct by Npower for electricity and Total for
gas – no invoices from laser unless for pre October 1st period
There will be two billing groups:
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Centrally invoiced – currently billed by laser to creditors will be
paid centrally and journaled
Invoiced to site – currently billed by Laser will be paid by site
Energy team are the primary point of contact for all energy
queries - energy@Southampton.gov.uk
Centrally Invoiced to Creditors
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Includes all energy invoices sent to creditors as part of the P2P process
– all SCC general fund meters should be billed this way
From October 1st will be an electronic EDI file sent to the energy team
Validated to ensure correct and all inconstancies highlighted by the
energy team
Two files then generated by the energy team to:
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Journal costs via agresso from the correct costs centre to a holding
account
2.
Pay supplier from holding account
Invoices direct to site
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All invoices sent direct to site as now but from Npower (electricity)
or Total G&P (gas)
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Energy team receive an electronic copy of the invoice
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All copy invoices validated and checked by the energy team
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The same payment process followed as now
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Only non general fund sites will receive invoices to site – some
schools, Active Nation etc
How to monitor your energy bills?
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The energy team has undertaken work in the background and will
contact you shortly to:
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Confirm some contact and financial details with you
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Confirm you have access to the SCC systems link energy web site
Costs will be journaled from your cost centre code or
You will raise an order for payment directly with the supplier
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You will be able to see the costs
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All other information will be shown on systems link web site
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http://www.systems-link.com/webreports3/administration.aspx
Energy Team
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Email address – energy@Southampton.gov.uk
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Rae Newman – Energy Contracts & Management Officer
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Jason Taylor - Energy Manager
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Jane Altounyan – Carbon Reduction Officer
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Freddie Collins – Project Coordinator Sustainability
What we do to Manage Energy Costs
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Annual Benchmarking of Laser energy procurement
contract
Invoice & data validation – meter reads essential
Contract management (SRM)
Energy reporting
Ongoing checks – e.g. meters, VAT, CCL
Energy invoice changes
AMR and data
Moving forward - Management of water – user tariffs
Overall Summary
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1st October managed service in-house
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Deal direct with Energy Team
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1st invoices mid November mostly electronic
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Minimal impact on the customer during transition and an
improved ongoing service
Q&A