See how we saved the Wye Valley NHS Trust

over £16,823 in one year.

Who are West Mercia Energy?

Specialising solely in managing energy contracts for the public sector, WME is jointly owned by four local authorities: Shropshire, Telford & Wrekin, Worcestershire, and Herefordshire councils, respectively. WME are committed to supporting public sector customers to achieve their specific net zero ambitions and work collectively to achieve the Government’s net zero pledge

Overview

Following a recommendation from another NHS Trust, Wye Valley NHS Trust moved their gas and electricity supplies to West Mercia Energy (WME) from 1st April 2020, opting for our fully managed energy provision, achieving significant cost savings in year one.

Our Work

This contract involved a portfolio of 22 gas and 17 electricity meters across multiple sites.

  • Fully transparent service
  • Fully managed energy provision
  • Cost-saving results

Fully transparent service

Wye Valley NHS Trust had previously invested in another provider who, although delivered a fully managed service, were not providing them with the support they needed on a regular basis.

A lack of transparency and context within procurement performance and general reporting created headaches as to how much energy was being used across sites, and the associated monetary values. In addition, support needed for reporting, and the understanding of unclear reports, incurred additional charges, although Wye Valley had paid a management fee aspart of their contract.

Wye Valley wanted a service that provided them with energy supply that met the needs of their sites, whilst also being completely transparent and supported through hands-on management. Furthermore, with the NHS objective to use 100% green electricity by 2022, the Trust had goals to invest in a solution that would allow them to achieve this goal in time.

Fully managed energy provision

WME trade over 1.25billion kWh’s and provide energy services to 12,000 supply points across the country. Service offerings available to our customers includes both fully managed and procurement only solutions.

Choosing to move energy suppliers for a large organisation can be a daunting task, collating portfolio data, dealing with contracts and the costs associated with missed deadlines of a complete supplier switch all a concern. Wye Valley opted for our fully managed energy provision service, with the agreed transfer date of 1st April 2020. The client was surprised by the simplicity and ease of switching suppliers. As a collaborative effort, we lead the process working closely with our clients to support and guide them through the whole process, including assistance with the legalities involved in the contractual aspects.

Our fully managed service is inclusive of all reporting, support and guidance our customers may need, providing a cost-effective solution that includes a comprehensive bill validation and payment management service. Our reports are in-depth and supplied in a timely manner – and at no additional cost.

The Trust’s previous supplier did not allow for much control over budgets and a lack of agreed costs provided a huge risk. This agreement resulted in budgets being exceeded, and being taken from other, vital areas within the NHS. They also experienced management issues, such as too few units being purchased, also causing an issue on the Trust’s funds.

Cost-saving results

Thanks to WME’s risk managed, flexible procurement strategy and innovative capped price mechanism, Wye Valley NHS Trust have saved a significant amount within the financial year, even with the market being unstable. Keeping to budget is vital within the NHS and our capped price mechanism has allowed the Trust to plan ahead and stay within budget , removing the need to ask for increases in budget from the board and reducing any overspends.


Customers on our fully managed solution have complete peace of mind and don’t need to be involved in the day-to-day management of their energy supplies. Part of this provision includes a validation service whereby each monthly energy invoice is validated by WME before it reaches the Trust. If it passes validation, WME pay the invoice and onward charge to the Trust. If it fails, WME resolves any issues directly with the supplier on the behalf of the customer, and the Trust does not receive an invoice until the issue is resolved. This provides complete peace of mind that each energy invoice is correct before it is issued. This service alone has saved the Trust over £16k in year one of their contract.

This level of service saves them time internally and, with WME’s ongoing contract management, reporting and detailed budgetary support; the Trust have a clear view of where they are within the markets, allowing for effective future planning of budgets. 

They also receive our friendly account management, which includes management of all queries, regular contract reviews and a dedicated siteworks function.

737
validated bills to date
102
bills failed validation
+16k
validation savings
(100% of savings returned to Wye Valley NHS Trust)
55
queries managed

As a result of their experience with us, Wye Valley have recommended WME to another Trust and, through WME’s provision of green energy, the Trust has achieved their goal of using 100% renewable energy 2 years ahead of time