ESTA to launch Energy Performance Contracting group

The UK’s energy management industry body, the Energy Services and Technology Association (ESTA), is to launch an Energy Performance Contracting Group to help organisations reduce energy costs and improve efficiency.

Energy Performance Contracting involves an agreement between service provider and customer in which the provider plans, installs and if necessary funds the measures to cut energy consumption and improve efficiency. The costs are recovered over the term of the contract. However, since energy consumption falls from the start of the process, overall costs to the customer are also reduced.

John Field (right), the chair of the new group, noted: “Many energy efficiency projects stall at the initial hurdle of accessing expertise or funds. Energy Performance Contracting addresses that challenge with the supplier delivering the improvements necessary to achieve a reduction in energy demand and cost. Energy Performance Contracting is an essential resource for businesses and organisations wanting to progress energy and cost saving programmes.”

Energy Performance Contracting provides a framework that unlocks investment and reduces risk. It offers access to technical expertise, guaranteed savings, project management resource and third party financing to drive larger efficiency projects.

The new Group includes Energy Performance Contract providers as well as other experts who can offer the necessary support services. Together, these specialists are creating a business hub to lead best practice in this area.

One of the first projects for the Group is to produce an introductory guide for customers and a code of practice for service providers. These will help to ensure that putting an Energy Performance Contract in place proceeds smoothly, quickly and efficiently.

Field added: “Our aim is to simplify and clarify what often seems a complex and confusing process. Energy Performance Contracts help the customer by transferring the project management and financial risk to external experts. Our Group brings together the specialist skills to enable energy consumers to access these opportunities.”