James Napier – Chief Executive, Resero Power Ltd Lord Redesdale – Chief Executive, EMA

Energy Performance Contract (EnPC)

Proven model with a track record of third party funding

• Capital cost for increased efficiency transferred from the energy consumer

• Revenue stream can be used to fund back log maintenance as well as increased efficiency

• Most Performance contracts can be structured as service contracts and therefore accounted as ‘off balance’ sheet

• Common to have a ‘continuous improvement’ clause to ensure contractors continue to work on further efficiency

• Provides facilities with ongoing visibility and control of their consumption

Flexible contract structured to the needs of individual customers

Visibility

Roll out of planned metering to capture usage

and highlight wastage

Control

Embed supporting technology to control

and optimised

consumption

Optimise

Upgrading of assets

and adoption

of efficient technology

1 3 2

Critical to start with gaining visibility and real time demand management

• A Water Performance Contract (WPC) is a technical solution but also a financial product

• The value of the contract is not based on the value of kit and metering

• The value is based on the financial return of the Contract

A WPC’s standardised sections: • Complaints Procedure • Data Protection • Data and Protocols • Compliance with an Assurance Body (UCAB) • Adjudication

• WPC - off balance sheet • Due to the meter (the meter is owned by the water

retailer) • It could be removed from the building or sold to the

next service company • Adjudication on the value of the meter will be in the

WPC

UCAB will set up three working groups from amongst its members: 1) Water Performance Contract (WPC) 2) Code of Conduct (CoC) 3) Standardisation of Protocols (SoP)

UCAB Advisory Board

Membership

Water Licence Holder

Retailers Manufacturers Consultants

Working Groups

EMA Board