Energy  

124  The provision of energy is clearly not unique to a social care PFI project and issues arise in relation to:

124.1  volume of use - how many units of energy (kWh) is needed to operate the Facilities and provide the Services;

124.2  cost per unit; and  

124.3  sourcing of the energy purchased.  

125  In relation to volume of use, the Service Provider will be responsible for providing new facilities and should be incentivised to design and operate the facilities to optimise efficiency of energy use.  This Guidance recommends that the Service Provider should manage energy volume risk, as this provides a basis for an integrated contract and ensures the Service Provider is incentivised to take advantage of changes in technology that will bring about energy efficiency gains.  The consideration of the installed energy load is critical to the design process and to the management of operational risks over time.  The Model Contract requires the Service Provider to design and build to achieve a specified energy consumption level.  A proposed system of monitoring is set out.  If the specified consumption level is not met the Service Provider must either carry out rectification works or compensate the Local Authority.