London Energy Project (LEP)

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The London Energy Project was set up to:

  • review London authorities' energy procurement processes and strategies
  • identify and promote best practice within energy procurement.

Considerable progress has been made over the past year. Three Central Purchasing Bodies have been rigorously evaluated by an independent customer panel against London's Specification of Requirements Opens in a new window

New energy contracts are available

The London Energy Project is pleased to confirm that following evaluation, two Central Purchasing Bodies*, Laser and Buying Solutions, have sufficiently satisfied the Specification of Requirements. Both organisations offer Pan Government Energy Project-approved flexible risk- managed contracts**. The third Central Purchasing Body, The Energy Consortium (TEC), provide a range of energy procurement products and services to the public sector but have yet to sufficiently demonstrate meeting the London Energy Project's Statement of Requirements. The LEP Project Board however is pleased to report that TEC continue to make marked progress in this regard.

The following links provide further guidance and support on:

In September 2008, the London Energy Project (LEP) held a workshop to provide attendees with a clearer understanding of the techniques and processes required to carry out risk managed, flexible procurement, the volumes required to aggregate contracts and how the evaluations Opens in a new window of service providers were conducted. The presentations also clarified benefits and efficiency gains and energy procurement costs avoidance.

The London Energy Project recommends that London public sector bodies adopt flexible risk managed energy procurement by migrating energy volumes to one of the professional buying organisations' contracts. These are:

  • Laser's flexible gas and electricity contracts only
  • Buying Solutions' flexible gas and electricity contracts.

History of the project
LB Haringey has been leading on this project since 2005. In this time we have:

  • carried out a review of the energy procurement processes and strategies of London and South East authorities
  • developed an action plan to help authorities identify and manage the areas that enable effective and efficient energy procurement
  • run workshops on Automated Meter Reading and Financial Energy Management, in support of best practice in energy procurement
  • developed a best practice energy procurement model Opens in a new window to enable authorities to better manage their energy budgets in the volatile energy market
  • developed a best practice specification of requirements Opens in a new window that represents what local authorities expect from energy procurement service providers
  • presented authorities with a solution that meets the preferred procurement model and specification of requirements developed in consulation with local authorities, in line with best practice.

 In 2009 we will:

  • continue to support authority progress against the action plan
  • continue to feed into a UK public sector review of energy procurement, sponsored by the Ministry of Defence.

* For a definition of a Central Purchasing Body, please refer to the following OGC guidance Opens in a new window

**Definition of a flexible contract - a contract with the ability to fix volumes over a series of purchases in the wholesale market.

It should be noted that past performance is not a guide to future performance, thus the saving from flexible procurement will vary.

Project id: CA14
Theme: Delivering Together
Status: Active
Project lead: Richard Le Donne
Contact: lce.energy@haringey.gov.uk, 020 8489 1925

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