chapter  7
23 Pages

The Supply of Outsourced Energy Solutions

This chapter looks at the energy services on offer in the United Kingdom. Energy saving performance contracting developed in the United States of America and is still the dominant model in that market. As the power and gas markets have evolved, the role of procurement consultants has changed. With the advent of flexible, transparent power products that allow better risk management, the requirements for the procurement consultants has changed to focus on risk management. Using consultants is the simplest form of energy services outsourcing. It is a way of accessing specific technical expertise that is not available within the organisation or obtaining an independent review of the situation. An Energy Service Company develops and implements a project or projects that reduce the cost of energy and operations and maintenance and takes a fee that is related to savings. The client achieves net savings after capital repayments from the start of the project.