The energy market has changed at a rapid pace in recent years, with wholesale gas and power markets volatile and prices hitting historic highs.
This backdrop of surging energy prices made Social Value even more important to the NEPO Energy Team, which procures energy contracts on behalf of local authorities and other public sector organisations.
Here we reveal how NEPO created Social Value for the North East through a key energy contract.
Social Value in the energy market
NEPO carried out a project which resulted in the award of a contract to EDF Energy to supply the Electricity Supply and Demand Framework Agreement, used by 23 public sector organisations and valued at around £220 million.
The two major objectives of this procurement were:
- Developing a relationship with a supplier that would provide a sound basis for managing and reducing energy usage
- Delivering Social Value for the North East
Measuring impact with the Social Value TOM System™
It has historically been difficult to embed Social Value into large energy procurements. NEPO helped the sector turn a corner in this respect by utilising the Local Government Association-endorsed Social Value TOM System™.
Since much of the energy market was unfamiliar with the TOM System, NEPO held extra engagement sessions to clarify its desired objectives. Suppliers were also encouraged to attend free training provided by the NEPO Business Club, with sessions focused on the principles of the TOM System, as well as methods of creating Social Value within a business.
The project saw months of engagement upfront to establish Measures meaningful to NEPO and its customers. This also facilitated the development of the specification and requirements, covering all supplier services from core operational requirements through to strategic ambitions, including Social Value.
What were the results?
In addition to monetary savings, a robust SLA, and ambitious energy efficiency measures, the awarding of the contract has resulted in several far-reaching commitments to deliver real Social Value within the North East.
These commitments are also measurable against the TOM System, ensuring that the benefits delivered via the contract are tangible and meaningful.
This project has so far achieved £70,000 of committed Social Value.
From education to decarbonisation
As a result of NEPO’s work, EDF developed classroom ready educational content focused on STEM subjects for primary and secondary schools. Topics included:
- Electricity generation types
- Associated carbon factors
- Net Zero and the benefits of renewables
NEPO and EDF worked closely with an individual trust of around 50 schools, helping to ‘teach the teacher’ on the content, and supporting the implementation of lesson plans into the curriculum. NEPO also delivered virtual sessions on net zero, how to report on it, and ways to achieve low carbon objectives.
Within NEPO’s framework agreement, EDF committed to financially invest in decarbonisation for the customer base - these funds enabled the installation of two new Solar PV arrays in two large schools in Durham. In addition to helping the schools save money, generate zero carbon power, and reduce their reliance on the grid, the installations will serve as a focal point for engagement and learning.
Work has also taken place with the North East's voluntary, community and social enterprise (VCSE) sector, which represents more than 1,600 organisations across the region. NEPO has now become a supporting member of VONNE (Voluntary Organisations Network North East), which assists them in strengthening the region’s VCSEs.
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