Public Sector in Scotland
Supporting a £30m investment across 20 schemes
Set up in 2015, the Non-Domestic Energy Efficiency Framework (NDEEF) is the Scottish Government’s flagship scheme to enable public sector retrofits.
Independent performance measurement is a key requirement, with substantial retention payments linked to the verified achievement of supplier saving targets. As a result, EEVS external audit and supplier performance verification services have been a cornerstone of c.£30m public sector investment across 20 schemes to date.
To help meet Scotland’s climate change targets, the Scottish Futures Trust (SFT) worked with Scottish Government to design an Energy Performance Contracting approach for public sector bodies.
The SFT were keen to ensure independent performance measurement was ‘hard-wired’ into a payment mechanism. A key innovation has been to retain a portion of supplier payment until their performance has been proven.
A dedicated Project Support Unit also helps Authorities to develop projects using the SFT’s contract templates and to select a delivery partner from a list of pre-qualified service providers.
Design and Set Up
The Scottish Futures Trust (SFT) specified the International Performance Measurement and Verification Protocol (IPMVP) as the performance measurement standard for suppliers to follow.
As leading experts in the IPMVP, with extensive experience of performance-based contracts, EEVS was well placed to support scheme development.
In 2015 EEVS was appointed as part of a team led by Mott MacDonald to provide technical advisory services. The work involved development of technical specifications and contractual schedules and running ‘shadow assessments’. These tested the process against theoretical projects while providing worked examples for scheme users.
Since the framework was launched in 2016, EEVS has continued to provide specialist advisory services, as part of the Mott MacDonald team appointed to run the scheme’s Project Support Unit.
EEVS services for the NDEEF
- Provision of independent M&V professionals – CMVP qualified EEVS experts are appointed as the Measurement & Verification Professionals for projects to offer expertise and impartiality in reconciling energy savings performance against guarantees.
- Contract schedule development – a key output is a robust Performance Measurement Plan to define the specific calculations and processes used to determine the saving performance of a scheme.
- Savings audit & reporting – EEVS follows the project through construction and a 12-month performance reporting period to ensure that changes in scope and site operations are accounted for. At the end of this period a Savings Report is produced in line with the agreed Performance Measurement Plan. Where guaranteed savings are met, the project concludes and the Contractor receives their performance retention payment.
- Remedial works verification – where underperforming elements are identified, remedial works will be agreed. These are subject to further EEVS verification before payment can be released.
Benefits for the Scottish Public Sector
Successfully verified efficiency savings of £3m a year.
- The scheme is now a proven success with externally audited and verified energy savings over £3million a year.
- Retention payments linked to performance ensure there is a focus on delivered energy saving achievements rather than relying on upfront projections and estimates.
- Authorities and Contractors receive evidence-based, objective and unbiased reporting, improving trust and confidence in the results.
- Performance issues can be clearly identified and remedial works agreed to ensure the efficiency measures are properly ‘bedded-in’ and help ensure the Authorities stay on track to meet any ROI requirements.
- Proven results build confidence in the scheme and several Authorities have procured follow-up projects.
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