Skip to main content
Facilitate Magazine: Informing Workplace and Facilities Management Professionals - return to the homepage Facilitate magazine logo
  • Search
  • Visit Facilitate Magazine on Facebook
  • Visit Facilitate Magazine on LinkedIn
  • Visit @Facilitate_Mag on Twitter
Visit the website of the Institute of Workplace and Facilities Management Logo of the Institute of Workplace and Facilities Management

Main navigation

  • Home
  • News
    • Comment
    • People
    • Reports
    • Research
  • Features
    • Analysis
    • Features
    • Round Tables
    • Webinars
  • Outsourcing
    • Contract Finder
    • Contracts
    • FM Business Models
    • Interviews
    • Mergers & Acquisitions
    • Opinion
    • Procurement
    • Trends
  • Know-How
    • Explainers
    • Legal Updates
    • White Papers
  • Jobs
  • Topics
    • Workplace Services
      • Hospitality
      • Catering
      • Cleaning
      • Front of House
      • Grounds Maintenance
      • Helpdesk
      • Mailroom
      • Manned Guarding / Security
      • Pest Control
      • Washroom Services
      • Disaster Recovery
      • Specialist Services
    • Professional Performance
      • Behavioural Change
      • Continual Professional Development
      • Education
      • Management
      • Recruitment
      • Training
    • Workplace Performance
      • Benchmarking
      • Health & Wellbeing
      • Operational Readiness
      • Procurement
      • Security
      • Workplace User Experience
      • Workplace Culture
    • Compliance
      • Health & Safety
      • Risk & Business Continuity
      • Standards
      • Statutory Compliance
    • Building Services
      • Architecture & Construction
      • Asset Management
      • Building Controls
      • Building Fabric
      • Drinking Water
      • Fire Protection
      • HVAC
      • Landscaping
      • Mechanical & Electrical
      • Building Security
      • Water, Drainage & Plumbing
    • Technology
      • Building Information Modelling
      • CAFM
      • Data & Networks
      • Document Management
      • Information Management
      • Internet of Things (IoT)
      • Software & Systems
    • Energy management
      • Energy Management Systems
      • Electricity
      • Gas
      • Solar
      • Wind
    • Sustainability
      • Environmental Quality
      • Social Value
      • Waste Management
      • Recycling
    • Workspace Design
      • Agile Working
      • Fit-Out & Refurbishment
      • Inclusive Access
      • Lighting
      • Office Interiors
      • Signage
      • Space Planning
      • Storage
      • Vehicle Management / Parking
      • Washroom
    • Sectors
      • Corporate Office
      • Education
      • Healthcare
      • Manufacturing
      • International
      • Retail
      • Sports & Leisure
      • Regions
  • Buyers' Guide
Quick links:
  • Home
  • News
  • Comment
Energy management

Now > Next > How? Ian Jeffries on how energy saving partnerships will tackle high energy prices

Open-access content Tuesday 7th June 2022
Authors
Ian Jeffries
web_Ian-Jeffries-EEVS.png

Ian Jeffries argues the case for energy saving partnership models

Ian Jeffries, managing director at EEVS, argues that how robust energy saving partnership models hold the key to tackling rising energy prices.

The theme? 

Taking a partnership approach to energy performance.

Where are we now? 

We are firmly in the era of escalating energy prices. While some larger organisations have hedged energy prices for the near future – protecting budgets to a point – all organisations need to be thinking about how they will manage high energy prices going forward.

Becoming a more energy efficient organisation should be the first stop on this journey. Across large estates, some organisations are cost-effectively driving these energy savings via their third-party facilities manager (FM). FMs are well equipped with access to the data, skills and scalability needed to deliver efficiency improvements (for example optimising plant, equipment and operations) across many sites. 

These schemes require time and money to set up and structure robustly, but the business case is simple: it’s significantly cheaper to pay an FM supplier to deliver verified energy savings than it is to do nothing and incur much higher energy bills – and carbon emissions.

Where do we go next?

Close attention to contractual terms, commercial and delivery models is key to ensuring close cooperation, aligned objectives and a shared sense of purpose. 

To build trust and credibility, and to encourage investment, it’s vital that there is full transparency and traceability of the energy and cost saving claims made by FMs. Unfortunately many schemes fall down when businesses fail to stipulate how the financial savings derived from lower energy consumption should be attributed. And without independent verification, the accuracy of suppliers’ savings claims can be uncertain.  

Energy savings must be clearly demonstrated using best practice standards and in a contractual manner that fairly shares risk and reward. While an FM may reasonably absorb the risk associated with optimising estate-wide energy use, it is incumbent on the client to absorb the risk of energy pricing so both parties are ‘in it together’. 

To manage financial risk and drive value for money, clients should consider securing a robust performance guarantee from their FM supplier. An evidence-based approach to determining real-world performance against a guaranteed target ensures suppliers are held to account and deliver on their performance promises – supported by financial incentives to drive sustained performance and continuous enhancement of energy savings.

How do we get there? 

Some corporate estate and property teams use a simple contract where excess cost savings are split, say, 50:50 between client and contractor.

A more sophisticated, market-based approach is to agree to a pence per kilowatt hour (kWh) payment rate for energy savings achieved. This offers both an enticing ‘carrot’ for verified over-performance and a significant ‘stick’ for under-performance – with suppliers financially penalised at the going rate if they fall short. 

Independent performance assurance is essential. To verify an FM’s actual performance, a detailed qualitative and quantitative assessment of the methodologies and calculations used to generate savings figures is a necessity. It typically involves periodic audit of relevant contractual documentation, energy and related datasets and analytical processes. 

The result is performance certainty and transparency for both parties. With a well-constructed tripartite contract between occupier, FM and independent verifier, the sky is the limit on achieving world-class energy performance.

More opinions from the sector

Martin Read

NHS operations and estates & facilities: a partnership of astronomical importance

NHS Ops and estates & facilities: a partnership of astronomical importance
Friday 17th June 2022
Open-access content
web_Nic-Marks.jpg

Measure employees’ happiness not their engagement

Measure employees’ happiness not their engagement
Wednesday 8th June 2022
Open-access content
web_Ian-Jeffries-EEVS.png

Now > Next > How? Ian Jeffries on how energy saving partnerships will tackle high energy prices

Now > Next > How? Ian Jeffries says energy saving partnerships will help with high energy prices
Tuesday 7th June 2022
Open-access content
web_10-Downing-Street_credit_pcruciatti_shutterstock_145853606.jpg

Sector leaders ‘appalled’ at treatment of facilities staff at No. 10

Facilities management industry leaders have said they are "appalled and upset" after civil servant Sue Gray's report said there were "multiple examples of a lack of respect and poor treatment of security and cleaning staff" at 10 Downing Street during the coronavirus lockdown partygate affair. 
Thursday 26th May 2022
Open-access content
web_Janet-Young.png

World FM Day 2022: Leading a sustainable future

World FM Day 2022: Leading a sustainable future
Wednesday 11th May 2022
Open-access content
web_©Thrive_Chris-Head-Shot.jpg

Social value procurement: reacting to Jacob Rees-Mogg’s comments

Social value procurement: On Rees-Mogg’s proposals
Friday 29th April 2022
Open-access content
Filed in:
Comment
Also filed in:
Energy management

You might also like...

Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Today's top reads

 

Latest Jobs

Project Leader (Maternity Cover One Year Contract)

Cambridge
Circa £50,000 Pro Rata + Benefits & Opportunities
Reference
56378

Maintenance Supervisor

Surrey
Up to £43,000 + Excellent Package & Opportunities
Reference
56376

Regional Facilities Manager

South West England
Circa £40,000 + Benefits & Opportunities
Reference
56375
See all jobs »

 

 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to print

Sign up to receive our bi-monthly magazine

Subscribe
Facilitate magazine cover, June 2020
​
FOLLOW US
@Facilitate_Mag
Facilitate Magazine
Facilitate Magazine
CONTACT US
Contact us
Tel: 020 7880 6200
​

IWFM

About IWFM
Become a member
Qualifications
Events

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to Facilitate Magazine
Write for Facilitate Magazine

General

IWFM Jobs
Help

© 2022 • www.facilitatemagazine.com and Facilitate Magazine are published by Redactive Media Group. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ