Northern Lincolnshire and Goole NHS Foundation Trust
EEVS saves NHS Trust over £600,000 by implementing robust performance governance framework for energy and carbon saving scheme.
When major NHS Trust - Northern Lincolnshire and Goole - approached EEVS in 2012, they were looking for expert help harnessing their potential for delivering world-class healthcare in a more energy-efficient way.
They had set an ambitious target of a 25% reduction in CO2 emissions within four years. Deputy Director of Estates & Facilities, Simon Tighe approached EEVS to establish an independent, expert governance structure around the energy capital project.
Background:
Over the ten-year relationship that EEVS has had with Northern Lincolnshire and Goole NHS Foundation Trust, there has been a clear focus on energy improvement projects, involving considerable capital funding. In 2012 – and with an ambitious goal to reduce carbon emissions by 25% in just four years – the trust had contracted with a major energy supplier to implement guaranteed energy and carbon reduction through an Energy Performance Contract (EPC).
The intention was that the contractor would underwrite utility cost savings of almost £600k, and the equivalent of 3,360 tonnes CO2, per year. The project was designed to help the Trust meet Cost Improvement Plan targets, mitigate the risk of future energy price increases and re-invest savings into patient care. It would also seek to improve the Trust’s sustainability and environmental credentials.
The Trust recognised that there was a need for greater oversight and supplier governance in relation to the project. They approached EEVS, as the market leader working with multiple NHS Trusts on Energy Performance Contract management.
Why did Northern Lincolnshire and Goole NHS Trust choose EEVS?
Simon Tighe explains why he decided EEVS was the right choice for this project:
“We’re aware that the successful management of large energy projects, such as this, requires a rigorous management of the governance framework. When operating in terms of ‘tax-payer money’ it’s doubly important that this is handled sensitively and independently, so as to ensure that every penny spent is done so ethically and with best return in mind.
EEVS was able to offer the technical expertise in-house, meaning that the team was streamlined and communication channels simplified. This for us was a massive driver in selecting EEVS.”
Delivering rigorous governance and energy savings:
EEVS set up an energy performance framework, that clearly noted key deliverables and targets, as well as metrics for measuring performance against each. Finally, in each case, EEVS allocated amounts of money to each objective, so it was clear at a much more granular level what the ‘value’ of achieving each was to the Trust.
This fact-based approach, grounded in the governance framework the Trust came to EEVS for, meant that the contract could be rigorously performance managed. EEVS was able to provide precise performance numbers, verified by members of their expert team.
Over a three-year period EEVS was able to ensure that the contractor mobilised all of the first-phase of energy conservation and EEVS managed the relationship between the Trust and contractor
By taking this meticulous approach EEVS worked hard to get the best results for the Trust. As Simon Tighe freely admits:
“EEVS saved us between £600 and £700k over the course of the project. I am confident that, without EEVS’ help, we would not have seen anywhere near this return on the project.”
Conclusion:
Simon Tighe has spoken about Northern Lincolnshire and Goole NHS Trust’s relationship with EEVS on a national stage, highlighting the importance of rigorous governance, meticulous planning and expert understanding of how to make Energy Performance Contracts successful.
“Over the course of the project we’ve very much enjoyed a partnership with EEVS,” says Tighe. “We’ve got to know Ian and Hilary well, meeting face-to-face on a regular basis. The level of expertise the whole EEVS team has provided has been utterly invaluable. Their knowledge, skill and ability to articulate things clearly and in plain English has made them an essential part of our team. I have no hesitation in recommending EEVS for their work with NHS Trusts and believe they have been a fundamental part in the success of our energy efficiency work, over the last ten years.”