§ Mr. Formanasked the Secretary of State for Energy what progress has been made in classifying guidance to public sector bodies in the use of contract energy management companies.
§ Mr. Peter WalkerThe Treasury and Department of Energy have issued a guidance note to other Government Departments on contract energy management. I believe the guidance to be an important step forward in the Government campaign to increase energy efficiency in the public sector, where potential savings total at least £400 million. The guidance emphasises that cost-effective energy efficiency measures should be encouraged and explains that contract energy management may well be an attractive option; it promotes worthwhile collaboration between the skills of the private and public sector, and guarantees improved energy management at no risk to the public sector.
The guidance makes clear that there are a range of options for improving energy efficiency. Contract energy management schemes are to be welcomed when they provide the best value for money.
Because they may provide an alternative means of financing energy efficiency capital investment, adjustments might also be required to public expenditure control totals where CEMs are used, to ensure consistent treatment with other directly funded schemes. The guidance describes what the adjustment should be, and when they are necessary.
The guidance will be kept under review in the light of experience. Copies have been placed in the Library of the House. The Energy Efficiency Office will continue to encourage the public sector to take up the opportunities offered by investment in the more efficient use of energy.