Leading London-focused property developer Telford Homes is the first housing provider to sign up to a new energy management service from Insite Energy. Known as ‘ESCo Manager‘, the new offering covers all the same services as traditional energy service companies (ESCos), but on a single-year contract, and with a fixed and transparent service fee based on actual costs.
A new approach to heat network management
Under the new contract, we handle the operation and maintenance (O&M) of the entire heating infrastructure. We also fulfill all management and administration responsibilities related to the network on a not-for-profit basis on behalf of Telford Homes.
We’ve been providing heat network services across much of housing provider’s portfolio since 2013. Since April 2021, we were already running the heat metering & billing at Stone Studios using the Guru Hub II, a pay-as-you-go (PAYG) system.
Emily McAlindon, Commercial Director at Insite Energy, commented, “The thinking behind ESCo Manager is that it enables developers to hand over all their specialist heat network responsibilities to our team of experts, freeing them up to focus on what they do best. Unlike a traditional ESCo, we’re not taking a profit on each unit of heat. The charges are based solely on real energy and maintenance costs and fixed management fees. That means fair and transparent tariffs for residents and full recovery of costs for the client. And if they’re not happy with our service for any reason, they’re not tied in.”
An Energy Service Company (ESCo) is a commercial structure created specifically to produce, supply and manage the local delivery of decentralised energy to a ‘whole site’ development. Typical ESCo contracts last between 10 and 25 years. This allows the ESCo to recover its capital expenditure. However, it can lead to dissatisfied residents being shackled indefinitely to high prices and poor service. But with ESCo Manager, because services are managed on the client’s behalf, single-year contracts can be offered. This ensures clients and residents retain control of their heating services.
Delivering ESCo Manager at Stone Studios
The management services provided at Stone Studios include fuel procurement, tariff reviews, and residential heat supply contracts. It also includes subcontractor management, asset maintenance, lifecycle planning, financial administration (incl. cashflow and a sinking fund management), reporting, and regulatory compliance.
“We’re always looking at ways to improve services and value for money for our residents,” said Anthony Atkinson, Estates and Customer Service Director at Telford Homes. “Having worked closely for some time with Insite on metering and billing for many of our developments, we have co-developed the additional roles that Insite bring as ESCo Manager in order to enhance the customer experience and promote the delivery of a holistic, high quality heat network service.”
Construction of the development, which also includes 15 commercial units and 33,000ft2 of affordable workspace, is due for completion in December.
