Green energy deal brings savings for Swindon Council

30 November 2009

A new greener energy deal is set to bring Swindon Borough Council savings on heating and lighting its buildings, including schools, over the next three years.

The contract, worth £15million, sets a capped price, rather than a fixed price, for the council’s energy. Savings made while buying energy below the capped maximum during the course of the contract will be shared between the energy buyer and the council on a yearly basis.

This contract promises to deliver substantial savings

Some of the energy purchased will be from renewable sources, while the rest will be ‘high-quality’ energy, from gas which has a significantly lower carbon emission than other forms.

The deal has been agreed between the Swindon Capita Partnership - through the Capita Symonds Energy team - and West Mercia Supplies, a local authority purchasing consortium, and has an option to be extended for two years beyond the already agreed three.

As part of the Swindon Capita Partnership, the Capita Symonds energy team were tasked with providing an energy contract intended to mitigate the price risk in a highly volatile market. This required considerable research and liaison with the client to develop a new energy purchasing strategy.

Cllr Mark Edwards, Swindon Borough Council Cabinet Member for Finance, said: “This contract promises to deliver substantial savings over the life of the contract, and has been delivered by the partnership between the council and Capita. The capped price still brings us the same budgeting certainty as the old fixed price deals, but also gives the prospect of savings, because the buyer is encouraged to seek out the best deals throughout the year and will share equally in any dividend from that with the council.”

The deal covers energy supplied to all council properties, including offices, schools, leisure centres and depots. The council also buys energy for some charitable organisations, such as Swindon Women’s Aid, and community centres.