British Gas will supply 100 per cent renewable electricity from April to some 3,500 hospitals and clinics via a deal brokered by Inspired Energy.
NHS Property Services (NHSPS) manages 3,500 NHS properties, around 11 per cent of the NHS estate in England. It also provides facilities management and maintenance to NHS trusts and tenants.
Inspired Energy was appointed by NHSPS last year on a three-year extendable contract, tasked to address competitive supply of the organisation’s £40 million a year power and gas spend. Purchasing energy under a flexible trading model was the chosen solution.
The NHS is estimated to account for between 4 to 5 per cent of Britain’s carbon emissions. The British Gas deal will offset around 38,000 tonnes of CO2 each year, at no higher cost in energy to NHS facilities or tenants.
Under the three-year deal, which is extendable to five years, British Gas will consolidate some 175,000 TWh of half-hourly metered supply into flexible commodity procurement based on Inspired’s trading portfolio, as governed by NHSPS’s risk management strategy. Standard authentication of renewables sourcing will be provided, according to a spokesperson.
The deal’s benefits, said NHSPS, include the ability to buy ahead on contracts, to cap prices and to unlock trades should the market drop. Minimised risk from transparent prices, and more predictable budgeting will follow, reducing administration costs, added the spokesperson. As multiple trades can be made over an extended period, the deal reduces exposure to one-off price spikes.