Audit report calls for more progress in meeting energy saving targets in Welsh NHS trusts

NHS trusts in Wales need to make further progress  to reach their energy related targets and ongoing developments across the service have the potential to deliver significant improvements in energy performance, according to a new audit report. The Assembly Audit Committee’s report on NHS energy management in Wales, published today (Wednesday October 4) says that NHS trusts have faced significant increases in their energy costs since 2004, but these increases have not been a significant factor constraining trusts’ ability to operate within their budgets. Centralised procurement of energy supplies makes good use of scarce energy procurement expertise, but it is too soon to tell whether a change in purchasing strategy in response to volatile energy prices will lead to better value of money. The report makes a number of recommendations, including the development of new targets for carbon dioxide emissions, on-site generation from combined heat and power and renewable energy sources, and procurement of green electricity from external sources. The report also recommends establishment of clear systems to monitor and evaluate the impact of funding provided by the Assembly Government for energy saving measures within the NHS. Janet Davies AM, Chair of the Audit Committee, said: “NHS trusts in Wales spent £20 million on energy in 2004/2005, and this is expected to increase significantly. Rising prices highlight the importance of effective procurement of energy supplies, and they increase the value of the financial savings that can be achieved through prudent management of energy consumption. Effective energy management also benefits the environment. With the climate change agenda becoming increasingly prominent, all parts of the public sector need to recognise and address their own contribution to emissions. The Assembly Government should check that all public bodies in Wales have access to the necessary expertise to manage effectively the risks involved in energy procurement and management.”