Implementing a Procurement Policy

Making the right choices about what equipment to buy can be as important as how you use it.  The true life time costs associated with purchased plant and equipment can differ dramatically in relation to its operational efficiency.

For example, an electric motor running 12 hours per day will consume its purchase cost in approximately 80 days; over 10 years, energy will account for around 99% of the life costs of the motor. Therefore spending 5% more on a motor to save 5% of the energy is worthwhile.  It should be noted that as energy unit costs rise payback times would decrease.

Buying environmentally preferable products does not mean compromising performance. Most manufacturers tend to consider environmental and technological improvements together.  Hence, equipment that has reduced environmental impact often has enhanced performance.

In addition there is less financial risk by purchasing proven environmentally preferable equipment as the lifetime running cost of equipment is lowered.  It may also help comply with future legislation regarding the disposal of electrical equipment.

Recommendations:

1. A purchasing policy is implemented in-house to ensure that energy efficient plant and equipment is purchased.  For example, energy efficient products should be purchased as policy and the life cycle costs should be taken into account when purchasing new equipment.

2. Ensure that all stakeholders understand the reasons behind the policy and that it is adhered to.

3. When purchasing new equipment the Enhanced Capital Allowance (ECA) Scheme’s Energy Technology List should be investigated.  Tax breaks are not available for a school as it is not a private business; however, the web site is a good independent reference source of energy efficient technologies, such as boiler plant, lighting, motors etc. Other technologies including water saving devices and cars can also be found on the ECA web site.

For further information download Carbon Trust publication:

• GPCS222 - Purchasing Policy for Higher Efficiency Motors