The Locality Energy Action Group
Locality has been working with our partners in the Energy Action Group since April 2012 with
considerable success. We have helped members to reduce the cost of their energy supplies, reduce
their consumption, and simplify their administrative processes.
One of our earliest success stories was with the Goodwin Development Trust:
Multiple Meters, Supply Sites, Suppliers, Contracts and Contract End Dates.
Background
When Goodwin Trust engaged with the Locality Energy Action Group energy procurement project they
were struggling under the weight of almost 50 separate supplies and a shrinking budget to manage the
demanding and detailed work of renewing energy contracts. This meant that:
1. Many contract Termination Dates were missed which caused supplies to be rolled-over onto
extremely costly tariffs
2. The administrative burden was high with as many as 2 or 3 negotiations occurring at the same
time.
3. Contracts were entered into on an ad hoc basis without a single end date – they were unable to
leverage preferential pricing and gain cheaper quotes.
4. As a result, energy costs and the administrative time required increased.
Solution
The long-term objective was to enable Goodwin Trust to procure all its energy at a cheaper price via the
Locality Energy Action Group. The first step was to organise and improve the efficiency of the
administrative process which involved:
1. Auditing every single supply
2. Gathering all the relevant meter and consumption details
3. Verifying current contract end dates.
This process identified many out-of-contract rates, which can be 2 – 3 times more expensive than the
average rates. In Goodwin’s case, they were charged 8 pence per kilowatt hour for gas (instead of 2 -3
pence) and 27 pence for electricity (instead of 10-12 pence)
Outcome
Within a short space of time, we were able to simplify the administrative process which then allowed
Goodwin to replace their contracts with cost effective short-term contracts designed to align with the
other Members of the Locality Energy Action Group. This is still a work in progress with a lot of supplies
still to gather in but impressive savings in the region of £40,000 have been achieved in the first 8
months of this long-term project.
The ongoing project relies on closely monitoring the remaining contracts and ensuring that termination is
submitted in a timely manner and all supplies are added to the Group Contract until there is one single
date for all gas and electricity renewals. In the long run, all of Goodwin’s supplies will be added and best
market rates will be obtained for the entire Goodwin Development Trust portfolio.
Graph Demonstrating Savings Achieved for the First Group of Meters
"The Locality Energy Action Group helped us solve a problem
that we maybe did not even think existed but it had grown
quietly and unnoticed in the background of our business over
a number of years. They took ownership of the issue and
managed it with clear and simple instructions that have now
created clear financial benefits which help build long term
sustainability within the Goodwin Development Trust.”
The First Energy Basket – a roaring success
Congratulations to all those that were involved in the very first Energy Basket which included
some 120 organisations pooling together all their energy consumption (approximately some 33
million kWh) to negotiate cheaper energy prices.
Some of those members who benefitted included:
 Bradford Trident - bills were reduced from £36,000 to £18,000 per annum
 The Burton Street Foundation - improved its unit price for electricity with expected
savings of £30,000 per annum
 Dallow Development Trust - saved £1,437 per annum
 Bootstrap Company – saved £14,467 per annum
 The Finsbury Park Trust – saved £2,674 per annum
 Manor House Development Trust – saved £3,190 per annum
 St Werburgh’s - saved £2,304 per annum
We are now working our way towards the second Energy Basket which we will go to the market
place with between May and the end of July this year. Please contact the Energy Action Group
on 029 2019 0260 or email us on [email protected] for details on how to get
your free no-obligation energy quote!!!!!
Electricity Demand Reduction (EDR) Pilot
DECC has announced that at least £20m will be made available to pilot EDR. The pilot will
enable DECC to better understand how efficient and cost-effective financial incentives for EDR
are and examine how EDR measures can best participate in the Capacity Market. It will also
allow them to test and develop some of the detailed aspects of design to inform the final
scheme.
We expect that the pilot will start in Summer 2014 and will run for two years. We anticipate it
will be open to a wide range of efficiency measures that can demonstrate they can deliver
verifiable reductions in electricity demand. A decision on financial support for EDR going
forward will be made based on what they learn from the pilot.
Pilot overview

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Support will be decided through a competitive process - most likely an auction
Successful bidders will enter into an agreement to ensure that the EDR measures are
installed and providing EDR savings within a specified time. Successful bidders will need
to provide data on the savings and assurance to enable DECC to assess outcomes and to
safeguard public funds.
Next steps
Following the announcement last year:

DECC have been engaging closely with experts and stakeholders to help inform more
detailed elements of pilot design.

DECC will provide more details on the pilot design and delivery body when they are in a
position to do so.

Summer 2014 – anticipated pilot launch
WE INTEND TO PULL TOGETHER A LARGE SCALE BID FOR FUNDS FOR PARTICIPATING TRUSTS
AND WILL KEEP YOU POSTED ON FURTHER DEVELOPMENTS.
The Energy Action Group is an energy management consultancy in partnership with: