New NHS Energy Deal

The NHS is set to revolutionise its approach to purchasing energy in order to reduce its annual energy bill by up to £100 million.

This new centralised method, which will be implemented from January, will allow the NHS to leverage its buying power and secure better deals on energy, ultimately enabling more funds to be allocated to patient care.

Currently, there are 200 different energy contracts in place across NHS trusts in England, each with varying costs and procurement methods. To address this, NHS commercial leaders collaborated with the Crown Commercial Service (CCS), the largest public procurement organization in the UK, to develop a national energy purchasing approach that ensures greater value for money and efficiency.

In the coming weeks, CCS will work closely with trusts to facilitate the transition to the new energy procurement system, tailored to their specific energy agreements.

The NHS expects all existing CCS contracts to be transferred to this new agreement by March 2024, and other NHS trusts are encouraged to join the CCS NHS energy basket once their current contracts expire.

This groundbreaking agreement is projected to save the NHS between £60 million and £100 million annually over the initial three-year agreement period.

In addition to benefiting from bulk discounts based on consumption volume, centralising energy procurement also offers price stability, resilience to external events, and increased budget predictability for trusts.

Given that the NHS serves approximately 1.6 million people daily, energy is a crucial resource for providing patient care, maintaining cleanliness, and preparing meals.

Jacqui Rock, NHS England's Chief Commercial Officer, emphasized the NHS's commitment to maximizing value for taxpayers and using its commercial influence to generate significant savings for patient care.

David Skinner, Director of Business Development & Customer Experience at CCS, expressed enthusiasm for the partnership with NHS England and the opportunity to deliver strategies and solutions that bring value and savings to trusts. This collaboration between the NHS and CCS signifies a shared dedication to the nation's health service and a promising future for their partnership.