/ RE:FIT Schools’ Energy Efficiency Programme
/ Organisation and Management
/ Administration and Management
/ Plans/Policies
Audience: / Head Teachers of all Bromley Maintained Schools and Academies
Kingswood Centre/Grovelands Centre
Head of Specialist Support and Disability Services,
Phoenix Children’s Resource Centre
Action required: / None
Timing: / N/A
Also sent to: / Secretaries of Staff Associations
Councillor Stephen Wells, Executive Member for the Education Portfolio
Councillor Nicholas Bennett, Chairman of the Education Policy Development and Scrutiny Committee
Councillor Robert Evans, Executive Member for the Care Services Portfolio
Councillor Stephen Carr, Leader of the Council
Terry Parkin, Executive Director of Education, Care and Health Services
Kay Weiss, Assistant Director (Children’s Social Care) (ECHS)
Jane Bailey, Interim Assistant Director (Education) (ECHS)
Anne Watts, Assistant Director (Strategic and Business Support Services) (ECHS)
Lorna Blackwood, Assistant Director (Commissioning) (ECHS)
David Bradshaw, Head of Education, Care and Health Services Finance (ECHS)
Angela Huggett, Human Resources Manager (CEX)
Doug Patterson, Chief Executive
Luis Remedios, Deputy Chief Internal Auditor (CEX)
Alastair Baillie, Environmental Development Manager (ES)
Jon Channon, Senior Lawyer (Resources)
Dave Starling, Head of Corporate Procurement (Resources)
Cathy Pimm, Asset Management Team Manager (Resources)
Gerry Kelly, Property Energy Manager (Resources)
Andrew Brook, Operational Property Manager
Jim Kilgallen, Senior Lawyer (Resources)
Type: / Guidance
Description: / This circular identifies a new invest-to-save opportunity – the RE:FIT Schools’ Energy Efficiency Programme.
Relates to: / N/A
Date Issued: / 10 October 2013
Contact: / Alastair Baillie, Environment Development Manager
Tel: 020 8313 4915Email:
For reader’s use:
Education, Care and Health Services / LBB Circular No: 067/13
/ RE:FIT Schools’ Energy Efficiency Programme
- Introduction
- This Circular identifies a new invest-to-save opportunity - the RE:FIT Schools’ Energy Efficiency Programme (RE:FIT for Schools).
- Being energy efficient saves money on electricity and gas bills and so is an excellent way of releasing funds for curriculum resources or improving school facilities.
- In addition to the clear financial benefits, a well-managed thermal environment improves educational attainment outcomes. More generally, taking action to reduce energy consumption will reduce your school’s carbon emissions and help to conserve fossil fuel resources.
- Energy efficiency activity is also an excellent practical learning opportunity as students can get involved in the science of how the installed measures work in practice and the mathematics behind the business case and financial savings.
- Developed by the Mayor of London and supported by the Department for Education (DfE), the Department of Energy and Climate Change (DECC) and Salix Finance, the scheme assists London’s schools in retrofitting their existing buildings with energy saving measures using a proven, cost-neutral approach.
- RE:FIT for Schools uses an approved Energy Service Company (ESCo) to identify and install measures (see diagram in para 2.4) which are guaranteed to reduce energy consumption (and therefore financial savings).
- Schools will need to fund such activity either from their own resources or by making use of special interest free loans (see Section 2.5).
- This Circular is believed to be correct at the time of writing. However, schools are advised to contact RE:FIT for Schools (see section 2.8), as appropriate, and to read this and any other guidance carefully as the Council is not directly responsible for the delivery of these schemes.
- RE:FIT for Schools
- RE:FIT for Schoolsis a GLA-led programme and is an extension of the Mayor of London’s RE:FIT scheme for public sector buildings. The scheme allows schools (or clusters) to achieve substantial cost savings, improve the energy performance of buildings, and reduce your carbon footprint.
- RE:FIT for Schools was trialled by the Olympic Delivery Authority at 12 primary and secondary schools in East London. This resulted in a 35% reduction in energy costs and a 31% reduction in carbon emissions. On average, the financial savings repaid the equipment costs in four years (payback period). At time of writing, some 60 schools across London have already registered their interest in joining the scheme.
- RE:FIT for Schools use an approved ESCo to design and install the agreed energy efficiency measures. The ESCo can also provide a maintenance regime if requested. This Energy Performance Contracting (EPC) model transfers the risk of performance failure to the ESCo, which must guarantee the energy savings over the agreed payback period. The process is supported throughout by the RE:FIT for Schools Team. The team have carried out a mini-competition (to conform with contract procurement rules and Schools Financial Regulations) and have currently appointed MITIE to act as the ESCo. Further mini competitions can be carried out in the future.
- The RE:FIT for Schools programme is designed to implement a broad range of energy efficiency measures (rather than individual projects) as identified in the ESCo’s business case. Such projects could include insulation and building fabric improvements, replacement or upgrading of mechanical and electrical services equipment, renewable energy installations or specialist measures, such as voltage optimisation equipment (see diagram overleaf).
2.5.A range offunding approachescan be used (RE:FIT for Schools can advise further) including:
- Salix Finance 100% interest-free loan (the most likely funding source) - see section 3
- The London Energy Efficiency Fund (LEEF)
- School’s own funds
- Top up of Salix Finance loan with School’s own capital
- An agreement will be required between your school and the selected ESCo. For Local Authority Maintained Schools, the Council’s agreement should also be sought in advance.
- For Maintained Schools, the Council will need to approve any measures materially affecting the building’s structure and/or services.
- If a Maintained School applies to become an Academy during the RE:FIT (and Salix) process, then these arrangements will have to be reflected in the Transfer Agreement.
RE:FIT for Schools: SCHEME FEATURES
- One-stop-shop: all aspects are managed on school’s behalf
- Site-based approach involving multiple measures (rather than a single project/technology)
- Limited demand on schools’ management resources
- Guaranteed return-on-investment (savings are contractually guaranteed by the ESCo)
- Substantial energy and carbon savings (typically ~28%)
- Payback period on average <7 years
- Open-book accounting so the school sees a complete cost and performance breakdown for each installed measure
- Easy-to-use framework (simple tendering in line with public sector procurement requirements)
- Tried and tested approach (programme was established in 2008 andhas already enabled savings of £2.1m energy bill savings p.a.)
- Support throughout the project from the GLA’s RE:FIT for Schools Team (Turner & Townsend)
- Can use a variety of funding options (including Salix Finance Interest Free Loan)
- Need to identify and secure sufficient capital funding
- ESCo management fee: usually 10-12% of the total costs (however, this is included in the loan repayment)
To request further information, or to sign-up to the RE:FIT for Schools, please:
Call: 020 7759 8520
Email:
Website:
Also see the RE:FIT FAQ page for a more in depth understanding of the scheme
- Salix Finance
- RE:FIT for Schools is a procurement service, which is financially supported by Salix Finance. Salix Finance have funding available for schools provided by DfE and DECC. Salix offer 100% interest-free loans for energy efficiency projects that payback within 8 years. There are no application costs or early repayment charges. Repayments are made to Salix from the project energy savings agreed with the ESCo.
- The DfE has explicitly allowed Maintained Schools to apply to Salix for funding.
‘The Department for Education is committed to helping schools and academies save money by becoming more energy efficient and therefore greener. The Department is working with Salix Finance to promote interest free loans for Energy Efficiency Initiatives. For all successful applications, blanket approval has been granted which will allow loans to be agreed through the Salix scheme without the need for each school individually to request the Secretary of State’s approval. In the case of maintained schools, you will still need to ensure, in accordance with your Local Authority’s financial scheme prepared under the School Finance (England) Regulations 2012, that your Local Authority is content with the loan arrangements prior to final approval.’
3.3.Academies can access the Salix Finance loan scheme provided certain basic requirements are met.
3.4.RE:FIT for Schools will process the application to Salix Finance on the schools behalf. However, the loan agreement is directly between the school and Salix Finance.
3.5.If you are interested in using Salix Finance as a source of funding for RE:FIT for Schools, all enquiries should be made through RE:FIT for Schools (contact detail box under section 2.8).
3.6.Schools may also wish to apply for the Salix Finance loan scheme outside of RE:FIT for Schools (i.e. no ESCo or guarantee of savings). For more information on Salix Finance please see contact details below.
To request further information on Salix Finance, please:Call: 020 3043 8800
Email:
Website: - the Loan Application and Background Notes pages have the majority of the details
- Summary
- The table below is intended to summarise the key features of RE:FIT for Schools.
RE:FIT for Schools: SUMMARY
Funding / Salix Finance (RE:FIT applies on schools behalf) and/or
Use schools own funds
Technologies / Technologies identified by ESCo
Potential to mix technologies and projects across campus
A ‘whole site approach’ with a suite of projects
Savings / Quantified and guaranteed by ESCo
Contracting / EU-compliant framework contract: mini-competition (already carried out)
Approval / Relevant school / governors / Trust approval
LAMS: Approval from LBB to raise a loan
Compliance with schools financial regulations / Contractual Procedures
LAMS: LBB permission to alter fabric of building
Development consent if required
Management / Dedicated RE:FIT for Schools Team that manages the tendering, procurement, management and monitoring of ESCo
Approved Energy Service Company delivers the programme
Works / Approved Energy Service Companies
Loan Payback Period / Olympic Delivery Authority Schools pilot projects averaged a four year payback but could be up to ten years
- Timescales
- To benefit from either initiative, schools are advised to contact RE:FIT for Schools as soon as possible. Applications can be made at anytime and put in the pipeline for the future. Most works can be undertaken during school holidays and even during term time.
- What is the Council’s Role?
- In practice, and before you proceed, you will need to:
- obtain the consent of the Council (and/or Diocese) as owner or landlord (if required);
- ensure that your business case and procurement strategy complies with relevant financial regulations and governance requirements;
- consider the liabilities taken on by the School in the event of change
- Permission from the Council must be sought in the respect of raising finance, planning and altering fabric of building/systems from all Local Authority Maintained Schools.
- Before commencing any activity, a School should establish its legal rights and responsibilities, in particular, if the Council has a role as either the owner or landlord of the premises on which the equipment is to be sited, and also as the relevant planning authority.
- Schools must observe the requirements set out in the Schools’ Finance and Governance Regulations, especially in respect of obtaining valueformoney, ensuring health and safety, and correct accounting treatments. In terms of value-for-money, the RE:FIT governance structure will support this requirement.
- RE:FIT for Schools Event
- The Council will be holding a joint event with RE:FIT for Schools and Salix Finance for all Maintained Schools and Academies interested in the scheme. If you are interested in attending or finding out more please contact by Friday, 25 October 2013.
- Further Information
- If you would like to speak further on this subject, please contact either of the following:
Name:Alastair Baillie
Title: Environmental Development Manager
Dept: Environment & Community Services
Tel:020 8313 4915
Email:
Name:Robert Bollen
Title: Education Strategic Property Manager
Dept: Education, Care & Health Services
Tel:020 8313 4697
Email: