Pan Government Energy Project

Introduction

Energy prices are highly volatile, there are requirements to reduce carbon emissions and increase the amount of sustainable energy. The public sector as a whole spends around £3.25 billion per annum on electricity and gas, but goes to the supply market as over 250 separate organisations.

In response to the Transforming Government Procurement initiative by the Treasury (2007), the OGC launched the pan government energy project in April 2007. This Project is  sponsored by the Ministry of Defence, to review public sector energy usage and procurement with the aim of delivering both cost and carbon savings.

The challenges faced by anyone in the public sector buying or managing energy are:

• How to reduce energy use and carbon emissions
• Minimise energy costs and manage risks in a volatile energy market.

The other challenge for the project is to address how the public sector can:

• Access different levels in the supply chain 
• Purchase in a coordinated manner in the supply market
• Encourage additional generation and support security of supply issues across the UK energy market.

The scope covers electricity, gas and liquid fuels.

Who is involved?

The MOD sponsor the pan government Energy Project, and through representation over 60% of the total public sector landscape is covered:

• Ministry of Defence (MOD)
• Office of Government Commerce (OGC)
• The Energy Consortium (TEC)
• OGCbuying.solutions
• NHS Purchasing and Supply Agency (PASA)
• Department for Children, Schools and Families (DCSF)
• HM Revenue and Customs (HMRC)
• Department for Work and Pensions (DWP)
• London Energy Project (LEP)
• Regional Improvement and Efficiency Partnerships
• Department for Environment and Rural Affairs (Defra)
• Pro5 Group - LASER/CBC, West Mercia, Yorkshire Purchasing Organisation, North East Purchasing Organisation, Eastern Shires Purchasing Organisation,)

What are the outcomes?

The project has developed a series of recommendations for improving energy procurement and management. These recommendations:

• Provide for a managed approach to sustainable energy procurement 
• Are designed to save public sector organisations money and carbon, thereby helping to meet CSR07 commitments and improving corporate social responsibility.

The key outcome will be a series of 'approved solutions' for public sector users to access. The departments and their respective organisations using these approved solutions will be 'compliant' with the TGP Energy Project recommendations.

These initiatives have been estimated to deliver £300m annual savings by 2010/11, while meeting customer needs for choice and improving the ability of all public sector organisations to achieve sustainability targets

What are the recommendations?

Anyone in the public sector looking to place a contract for energy supply or energy management services/technologies should contact the OGC Service Desk in the first instance to see if -

• There is already an approved solution that can be used and suits your requirements
• The contract you wish to place can be of use to others and become an 'approved solution'.

Contact us at OGC Service Desk - 0845 000 4999 Email: servicedesk@ogc.gsi.gov.uk

Governance and Terms of Reference

• Governance (Powerpoint, 173KB)
• Terms of Reference (MS Word, 295KB)