London North West Healthcare NHS Trust and their new energy procurement strategy

With energy procurement you want to mitigate risks of price increases. Read below how we helped London North West Healthcare not only with a strategy but with ongoing support too.

Posted on Feb 16, 2016

London North West Healthcare NHS Trust is one of the largest integrated care trusts in the country, spending approximately £6.6 million on their energy supplies.

The trust oversees; Central Middlesex Hospital, Ealing Hospital, Northwick Park Hospital, and St Mark’s Hospital. They also look after multiple community services including; Clayponds Rehabilitation Hospital and Meadow House Hospice, bringing together hospital and community services across Brent, Ealing and Harrow.

The Challenge

London North West Healthcare NHS Trust’s Procurement and Estates team needed an energy procurement strategy that mitigated risks of price increases, whilst also having a service that provided ongoing support to internal departments and stakeholders. They also needed robust, transparent data that could be used to drive down their consumption for further savings. The Trust did not currently have an Energy Manager so needed a service to provide this extra resource.

The Solution

The Trust ran a market testing exercise to identify a single provider that delivered best value, a comprehensive service offering and an OJEU compliant framework. LASER met these requirements with a full range of procurement and support services in a single place so the Trust avoided paying fees to numerous different providers. LASER has over 80 energy specialists and through this provided the Trust with a virtual Energy Manager and supporting team that could provide robust energy data and handle all queries surrounding energy procurement.

LASER’s Energy Procurement services fulfilled the Trust’s appetite for risk and their requirements for a bespoke flexible procurement strategy. Incorporating the Fully Managed service allowed LASER to validate the Trust’s invoices at source, stopping and amending any incorrect billing, thus ensuring 100% of savings remain with the Trust and mitigating the need for a shared saving approach. LASER’s full query management saved the Trust valuable time and resources, and our Bureau service enabled the Trust to drive down costs by monitoring and targeting their consumptions across all of their sites.

I was apprehensive about moving away from our current provider but our procurement exercise confirmed that we would be saving money by switching to LASER. Since the Trust switched, not only have we been able to save money by buying cheaper energy as predicted, we have also experienced a customer focused company that has helped us produce usage and budgetary reports saving internal staff costs too. We have regular on site meetings with the LASER team as well as a designated telephone contact, and with the help of our procurement team, we moved from our current provider to LASER team relatively painlessly and are now reaping the benefits of the project.

Nigel Myhill
Director of Estates and Facilities, Northwick Park Hospital

The Results

From April 2016 to date, the Trust has seen a 10% reduction in their energy costs. Successful bill validation and query management services have also reduced invoice costs and saved the Trust significant time and resource as LASER take on the burden of managing billing errors and daily contact with suppliers. LASER’s dedicated NHS Customer Relationship Team helped the Trust build rapport between various departments and stakeholders, and provides on-going confidence that all queries will be managed and resolved in a prompt manner. The Trust and LASER will be working together looking at on-going plans for bill validation and energy reviews.

The Key Benefits Delivered:

  • Acting as a virtual Energy Manager, LASER assists in the management of data and queries surrounding energy procurement.
  • LASER’s energy procurement strategy matches the Trust’s appetite for risk.
  • London North West Healthcare is provided with constant support to both Estates and Finance departments, providing robust and transparent data to further reduce cost.
  • Since April 2016, 121 of the Trust’s gas and electricity invoices have been successfully validated and processed to date.
  • LASER’s validation and invoice service is providing the Trust with a noticeable savings increase on their energy bills (100% of which stays with the Trust).
  • Full query management provided the Trust with the support needed to help them save valuable time and resources

How we can help you

We have a range of services to help your public sector organisation from energy procurement, managing your full energy portfolio and our bespoke carbon offerings to help you on your journey to net zero. If you would like to take a look at our services please visit here. Alternatively if you'd to talk to a member of our team, please do not hesitate to get in touch with us.

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