FAQs

You’re bound to have some questions. Here we’ve answered the most frequently asked.

As part of our wraparound service we investigate the opportunities for your business to reduce energy consumption, thereby saving you money. We invest in the rollout of energy efficient infrastructure and equipment, changing behaviours and processes where appropriate. Providing you with energy-saving opportunities, we co-ordinate and manage a team of technical specialists, equipment manufacturers and installers. After we’ve installed the equipment, often referred to as Energy Conservation Measures (ECMs), we maintain and operate it, continually driving energy-saving objectives.
We make an investment within your business which covers:

Assessment – this includes the audit costs and a review of your energy use and opportunities for energy reduction. This will be undertaken via two assessment processes: the Initial Energy Audit (IEA), and the Investment Grade Audit (IGA).

Delivery – this includes the purchase, installation and commissioning of the energy- saving solutions which our Assessment has deemed suitable for your business.

We transfer your risk, as you make no upfront capital investments and only start to repay this once the savings have been measured and verified. From our point of view? Yes. But this is what we’re good at; we know how to mitigate the risks.
In order to determine how we can reduce your energy consumption it is our job to find out find out how and where you use energy within your business. To help us, we will require some information, including:
• Your bill payments.
• Half-hourly meter readings
• If you have more detailed information about your current energy use (for instance, through your own monitoring and targeting system) we would benefit from access to that data.
• Hours of operation, number of employees etc.
• Whether you lease or own your premises
All of this information will help us understand whether your business could benefit from our service. At the same time, the data will help our energy specialists, ensuring that they’re fully informed when they carry out the IEA.
Yes. For example, we don’t just check the lights. Since our service maximises the energy-saving potential within your business, we’ll explore all of the opportunities available. Although the following is not an exhaustive list, we would consider:
• Monitoring & targeting equipment
• Heat pumps
• Boiler equipment
• HVAC equipment
• Combined heat & power
• Lighting
• Compact heat exchangers
• Motors and drives
• Compressed air equipment
• Refrigeration equipment
We will install new, more energy efficient equipment within your business and assess your operational and behavioural processes in order to save you energy. This means that we need to work with you to agree a delivery plan which doesn’t unduly affect your business. Until we know what type of equipment should be installed, or what changes we could make to your processes, it will be difficult for us to assess how we can best integrate the installation with your operations. Rest assured that we’ll consult with all appropriate parts of your business to minimise any disruption, working within planned maintenance and shut down periods where possible.
We may identify certain energy conservation measures which you, as an occupier tenant, have no control over. For example, your landlord may be responsible for a particular part of the building; or you might require your landlord’s approval to carry out specific work. In this case, we’ll agree a solution with both you and your landlord. In some cases, the landlord could be the party with whom we contract. Whatever the situation, we’ll always reach a position that works for everyone.
Our investment is via Low Carbon, a major UK investor in low carbon and renewable energy projects. Elegen will be the contracting party with you and alongside Low Carbon, will be the long term owner of the ECMs.
No. However we need to demonstrate that the potential energy savings are adequate in relation to the size of our investment. Generally speaking, the greater your energy spend, the greater the saving potential.
Yes, this is an important element of our service. Our energy specialists are trained in ISO50001 and have substantial experience in delivering and initiating energy change within business. Where appropriate we’ll agree with you a delivery programme for these services and ensure that this is tailored to meet the objectives we’ve set and agreed.
No, we are independent of equipment manufacturers and undertake competitive tendering when procuring equipment.

Our reach within the industry is extensive, and we are able to obtain significant procurement cost benefits which we pass on to our customers. We continue to research and understand advances in energy efficiency technology, ensuring that our customers benefit from the most appropriate balance of performance and cost.

We undertake a high level analysis of your business premises and operations. This is done through an Initial Energy Audit or IEA, highlighting the opportunities for energy saving. We will follow this with a more detailed assessment known as the Investment Grade Audit or IGA, which firms up the actual saving potential and required investment.
This is our initial assessment of your business, to identify the opportunities for energy reduction. Depending on the size of your business and whether you’ve undertaken any previous surveys, for example an ESOS report, we will visit your facility or premises to undertake this assessment. We will ask you for information such as your energy consumption over the past 12 to 24 months, or longer if available. Once we’ve completed this assessment we shall issue a report highlighting the potential savings and our investment along with an outline of the business proposal we would offer you.
The IGA is a detailed analysis of the opportunities identified within the IEA, confirming the energy and cost savings and our investment. We’ll undertake a detailed procurement exercise to establish ‘best fit’ equipment and where appropriate, evaluate any operational and behavioural changes which can be made.

We may need to install meters and sub-meters to monitor your energy usage and establish patterns linked to factors such as your business production and weather temperatures. This process is called Monitoring & Targeting (M&T).

We’ll also establish how we measure and verify the savings through the development of a Measurement & Verification Plan. We’ll agree the principles of this plan with you, as this will determine how we calculate energy savings going forward.

The audit also results in us devising and agreeing with you additional plans for installing, commissioning and maintaining the ECMs.

M&T is a tool which allows accurate, in-depth analysis of energy usage. Introducing sub-metering in specific areas of a building can provide invaluable data, allowing us to analyse energy patterns through the latest M&T software packages. This helps us to design the most appropriate ECMs to drive down your energy use.
With Measurement & Verification (M&V) we can assess the savings made through our energy management programme, addressing the question “How can I be sure I’m really saving money?”

With energy reduction, it’s natural to conclude that energy bills will be reduced. However, this isn’t necessarily the case. Overall energy use can be influenced by many factors, such as production levels, weather temperature fluctuations, occupancy rates even changes to your building or the way you manufacture products. A change in any one of these factors may lead to increased energy use, disguising the actual energy reduction.
So, our team of energy specialists will devise an M&V Plan, the guiding principles of which will be agreed with you from the outset. This will help us decide which influencing factors should be used to adjust energy consumption after the installation of an ECM. M&V provides us both with a ‘savings meter’, allowing a value to be placed on energy efficiency. This will be reviewed annually, informing how much energy has actually been saved.
We use the International Performance Measurement and Verification Protocol (IPMVP) as a recognised methodology to ascertain energy-efficiency savings. This will be undertaken via practical skills and experience of a Certified Measurement and Verification Professional (CMVP).

We have two simple contracts. The first is the Investment Grade Audit (IGA) Agreement, which covers the IGA process and is signed before we enter this stage. This allows us access to your business, in order to assess and provide the solutions for energy reduction and covers the possibility of you walking away from the process before we have funded the energy reduction measures.
The second contract is an Energy Services Agreement. This underpins how our long-term legal relationship will be maintained, setting out our respective rights and obligations and how these are managed and will be signed before we invest our funds within your business.
Before we start the IGA, both parties sign the IGA Agreement stating that, should you walk away during or after the IGA process, any third-party costs which we have incurred will be refunded. Most importantly we’ll tell you before we begin the IGA how much we intend to spend on this process; you won’t be asked to refund any more than this agreed amount.
The contract generally lasts 5 to 10 years, or in some circumstances a little more. To establish a definitive duration of contract, among other things, we’ll assess the investment required, the savings that can be delivered and the type of equipment to be installed.
Service Fee – this is a set charge paid quarterly in arrears for the duration of our agreement period. This is designed to cover the cost of our investment . This amount is reduced to zero once our contract ends.

Operational Fee – this is paid quarterly in arrears and covers the cost of maintaining the equipment, delivering behavioural change and contract administration incurred over the previous quarter. Our policy is open and transparent, and we’re happy to provide evidence of all these costs. At the start of the contract we’ll also give you an annual budget, so you can be certain what the Operational Fee will be.

Excess Savings Fee – this is paid annually in arrears and is calculated at 50% of the annual energy savings minus the Service and Operational Fees.

Service Fee – Unless agreed otherwise, we start to issue our invoices after 12 months has elapsed on the contract. During this time, we shall be measuring and verifying the energy savings, so that you can be confident that our solutions and investment have worked before you start paying

Operational Fee – Unless agreed otherwise, we will issue our first invoice in the first quarter following commissioning of the ECMs. Alongside our invoice, we’ll provide you with evidence of the costs we have incurred.

Excess Savings Fee – We will issue our invoice after 12 months has elapsed on the contract and thereafter every 12 months during the contract period.

We will reconcile the total savings against the fees you’ve paid to us at the end of each year of the contract. In the unlikely event that these fees are more than the total savings, we’ll refund the difference between the two values by offsetting future payments you make to us. This guarantees that you’ll never be out of pocket by using our service.
We’ll own and maintain any equipment installed under contract, working with you to develop an agreed maintenance plan. This will be designed to optimise the performance of our equipment while minimising disruption to your business operations.
It is part of our service that we maintain the equipment we own. The responsibility for any problems which may arise are therefore ours and we believe it’s much easier for us to deal with this rather than burdening your business. There may, however, be circumstances where it makes more sense for your business to carry out maintenance. Such instances would be governed under a simple service agreement between us.