London Borough of Ealing: RE:FIT Energy Performance Contract

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Information about London Borough of Ealing: RE:FIT Energy Performance Contract

Published on March 12, 2014

Author: SouthendCREST



Jo Mortenson, from the London Borough of Ealing provided those who attended with an overview about how the RE:FIT framework provides opportunities for local authorities to improve their energy efficiency performance.

RE:FIT Energy Performance Contract Jo Mortensen Local Partnerships & London Borough of Ealing March 2014

 Greater London Authority framework, available for commercial buildings across UK  Retrofit public buildings to save energy & water  Bespoke performance criteria  Access to private finance  Ability to tender collaboratively Public Sector - RE:FIT

Why use RE:FIT framework?  Competitive mini-tender  Transfer risk to suppliers  Templates, guidance and technical assistance from National Delivery Team  Reduced procurement lead times/costs  No share of excess savings  More cost efficient than single technology procurements 3

 New and better equipment installed (failing systems can be prioritised)  Reduction in maintenance backlog  Reduction in maintenance costs  Improved systems provide better building knowledge and early issue awareness  Improved environment for pupils and staff (air quality, reduction of hot/cold areas etc.) Guaranteed energy & water savings +

5 Maximise opportunities for schools & communities  Maximises opportunity for participation  Each local authority can create their own bundle of schools  Academies can be bundled with other schools (within the same areas and/or with other academies)  Seeing successful projects is likely to drive further sign-up within region, therefore having opportunity for other schools / local authorities to join makes sense Collaborative RE:FIT model

Benefits of collaborative model 6 Approach  Efficient - through low cost process and strong collaboration  Generates strong competition to provide the best solution and achieve value for money  Strong buyer power throughout programme – schools / boroughs are not going it alone

Benefits of collaborative model 7 Confidence for schools and boroughs  Programme led by experienced team using proven approach  Energy savings are guaranteed and pricing fixed before schools commit to implement

Benefits of collaborative model 8 Strong business case  Very good return on investment based on guaranteed energy savings alone  Other benefits – lower maintenance costs, reduced need for equipment upgrades, reduced maintenance backlog, lower CRC liability etc…  Improves building stock and environment for staff and pupils Supports economic growth – creates investment, quality jobs and better schools…

Opportunity & pathway for support 9 Local Partnerships can provide procurement, legal and technical resource to lead the tender activity for a regional RE:FIT programme to gain economies of scale and produce a highly efficient approach  Procurement can cover all schools in identified region  Local Partnerships/lead Local Authority run mini-competition using RE:FIT framework  Procurement awarded to single Service Provider (ESCo)

Getting started 10 Contact Local Partnerships Engagement of local authorities and schools (academies)  Initial lead authorities / academies identified Develop tender  Data gathering and creation of full ITT documentation  Tender and supplier selection Implementation  Investment grade proposals  Installation and energy savings

RE:FIT National Delivery Team: 020 7187 7372 Contact information:

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