Sector Guide
8.3.1 Energy management responsibility Table 37 below outlines the business case for the transfer of energy management responsibility from landlord to the contract caterer. This would require the installation of suitable energy metering to separate the utility supply to the kitchen, and a contractual agreement stipulating roles and responsibilities. The business case for installation of sub-metering and transfer of energy costs to the caterer is based on the following assumptions:
Feasible and cost-effective on 60% of sites. Submetering will not be cost-effective on smaller sites, and will not be physically feasible on others.
Transfer of energy costs via the catering contract is cost-neutral for the caterer.
20% savings on the metered energy could be achieved through behaviour change.
Training costs per site £1,000.
Metering cost per site £2,000 (1 gas meter and 1 electricity meter per site).
The implementation would take time due to the need to renegotiate contracts (typical contract length in the sector is 3-5 years). This recommendation must be seen as an enabling recommendation, as metering and contracts alone will not result in cost reductions. Contract caterers must ensure action is taken based on the metered information before savings will result. Table 37 Business case for submetering and transfer of energy management responsibility to the caterer
Summary
Total for applicable sites
Average site
Implementation costs
£30,000,000
£3,000
Cost reduction
£35,000,000 p.a.
£3,500 p.a.
Cost reduction p/meal
3.6p
3.6p
Payback period
1 year
1 year
CO2 reduction
158,000 tonnes CO2 p.a.
15.9 tonnes CO2 p.a.
Applicable sites
60%
Barriers
Contract length, contract negotiation, achieving costneutrality when there is no historic data, not cost-effective for small sites, not physically feasible for some sites. Pilot with some sites and report case studies.
Barrier mitigation
Ref: AEA/ED56877/Issue Number 1
64