An award-winning partnership between Vodafone, Mitie and EEVS – and a leading example of how EEVS’ programme assurance services can support large organisations deliver successful energy saving programmes across large estates. The project has proven energy savings of £10m a year and won ‘Project Innovation of the Year’ at the Energy Awards 2019.
Vodafone’s Energy Saving Innovation
In 2017 Vodafone set about addressing a key problem faced by many large organisations – if energy saving isn’t incorporated within a facilities management remit, consumption is very likely to go unmonitored, unmanaged and will operate inefficiently as a result.
To solve this problem Vodafone and Mitie developed an energy-saving-as-a-service solution (i.e. no-cost optimisation of existing plant and equipment) to be incorporated within their FM agreement.
Structured as a ‘payment by results’ scheme, it was fully understood by both parties that robust and credible savings figures would be critical, and EEVS was appointed to provide independent assurance for the scheme.
The estate-wide scale of the scheme generated two significant management challenges:
- Maintaining control – both operationally, in relation to the volume of works being undertaken, but also managerially to ensure that Mitie Energy stays on track.
- Analytical rigour – ensuring the accurate calculation and attribution of energy savings to a high number of Mitie-led activities; all set within the context of a complex and changing estate.
To address these challenges, a well-structured and standardised approach to programme management, technical energy-saving performance analysis and independent savings verification was seen as essential.
EEVS Performance Assurance Model
The EEVS performance assurance model was applied during 2017, working closely and collaboratively with both Vodafone and Mite.
The scheme-wide management framework combines the essentials of good practice programme and supplier management with best-in-class energy saving analyics, external auditing and savings performance verification.
As part of day-to-day scheme management, both Mitie and Vodafone adhere to all EEVS-stipulated processes and procedures, key components of which are summarised in the diagram (right).
The all-important rolling outcome is a quarterly EEVS-verified energy saving figure for the scheme. The annual saving figure is used as the basis for performance review and payment.
Key benefits for Vodafone
- Proven energy saving of £10m to date
- Senior management trust in the scheme sufficient for a major corporate announcement
- The focus on performance management has helped keep savings on track (versus targets) and has ensured Mitie activity-levels and focus remain high.
- Vodafone can respond quickly to unexpected issues (e.g. Covid-19, site closures, shutdowns, IT load changes) and ensure energy-related impacts are properly accounted for.
- Contract extension announced on the back of the scheme’s proven success
- Won Project Innovation of the Year at the Energy Awards 2019
Despite being the subject of routine challenge and scrutiny, Mitie is also highly supportive of EEVS role and the value that externally audited and verified performance can bring. For example:
- Much improved client trust in the reported savings
- Given commercial interests, no longer seen to be ‘marking their own homework’
- Substantially reduced scope for disagreement between the parties, especially at the point of year-end payments
- The commercial offer is more credible and investable as a result of EEVS oversight and assurance.
- The ability to stand out from the crowd in a competitive marketplace
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