Southampton City Council Energy Procurement Changes Seminar 2 nd October 2014

1. Southampton City Council Energy Procurement Changes Seminar 2nd October 2014

2. Energy Procurement Overview • SCC Procure £10 million of gas and electricity per annum - £5 million for commercial buildings – including £2.4 million in schools • Kent Laser (part of Kent County Council) contracted to procure our energy to 2016 • SCC pays Laser to: • Buy our energy • Pre – October • Manage our energy invoicing (Fully Managed Service) • Validation and query management • Npower – electricity • Total Gas & Power - gas

3. Energy Procurement Moving Forward • Business case made to bring the fully managed service in house – commercial sites only • Energy team will deliver a FMS plus added value at no extra cost • Kent Laser (part of Kent County Council) will continue to procure our energy to 2016 • Changes take effect 1st October 2014.

4. Why we are making these changes • Move from external expertise to internal expertise at no extra costs • Add value to the managed service – improved reporting and energy saving identification • To continue the delivery of statutory and other functions that the energy team deliver • Bring together all facets of energy to maximise savings and reduce administration – one stop shop e.g. from meter issues to identifying energy savings • Energy Team Delivered £183,802 savings / cost avoidance in 2013-14 - across schools and corporate buildings – we want to continue and increase these savings

5. Managing Energy & Water Costs

6. What does this mean for you? • We will be invoiced direct by Npower for electricity and Total for gas – no invoices from laser unless for pre October 1st period • There will be two billing groups: • Centrally invoiced – currently billed by laser to creditors will be paid centrally and journaled • Invoiced to site – currently billed by Laser will be paid by site • Energy team are the primary point of contact for all energy queries - energy@Southampton.gov.uk

7. Centrally Invoiced to Creditors • Includes all energy invoices sent to creditors as part of the P2P process – all SCC general fund meters should be billed this way • From October 1st will be an electronic EDI file sent to the energy team • Validated to ensure correct and all inconstancies highlighted by the energy team • Two files then generated by the energy team to: • Journal costs via agresso from the correct costs centre to a holding account • Pay supplier from holding account

8. Invoices direct to site • All invoices sent direct to site as now but from Npower (electricity) or Total G&P (gas) • Energy team receive an electronic copy of the invoice • All copy invoices validated and checked by the energy team • The same payment process followed as now • Only non general fund sites will receive invoices to site – some schools, Active Nation etc

9. How to monitor your energy bills? • The energy team has undertaken work in the background and will contact you shortly to: • Confirm some contact and financial details with you • Confirm you have access to the SCC systems link energy web site • Costs will be journaled from your cost centre code or You will raise an order for payment directly with the supplier • You will be able to see the costs • All other information will be shown on systems link web site • http://www.systems-link.com/webreports3/administration.aspx

10. Energy Team • Email address – energy@Southampton.gov.uk • Rae Newman – Energy Contracts & Management Officer • Jason Taylor - Energy Manager • Jane Altounyan – Carbon Reduction Officer • Freddie Collins – Project Coordinator Sustainability

11. What we do to Manage Energy Costs • Annual Benchmarking of Laser energy procurement contract • Invoice & data validation – meter reads essential • Contract management (SRM) • Energy reporting • Ongoing checks – e.g. meters, VAT, CCL • Energy invoice changes • AMR and data • Moving forward - Management of water – user tariffs

12. Overall Summary 1st October managed service in-house Deal direct with Energy Team 1st invoices mid November mostly electronic Minimal impact on the customer during transition and an improved ongoing service

13. Q & A