Tenant Update: Utility Provision

Utilities provision across the CHP estate continues to be delivered by either our Superior Landlord or via the Crown Commercial Services Contract help by CHP, with costs passed directly to tenants.

As tenants will have seen in their respective domestic contracts, current prices are significantly higher than those that were previously agreed as part of 3 or 5 year deals.

Whilst the market price has reduced, costs remain high compared to previous years, which, unfortunately, does impact on renewal premiums.

CHP Portfolio Managers, supported by the Technical Services team, continue to monitor and challenge utility proposals submitted by our Superior Landlords to ensure value for money on behalf of our tenants.

Where CHP procure utilities through their framework contract with Crown Commercial Services, we receive and review regular energy forecasts, and currently purchase in 6-month intervals. This is with a view to providing a level of price security whilst not being locked into long term contracts.

CHP are currently reviewing the recent agreement between NHS England and Crown Commercial Service. This action will help develop an NHS specific energy agreement under the CCS framework. The new agreement provides a significant opportunity to purchase energy utilising the significant buying power of the NHS and has an estimate potential to save between £60-£100 million per year for the NHS.

CHP also continue to work with our LIFTCo partners to drive energy saving measures across our estate as part of our sustainability agenda, with works such as LED lighting replacements being undertaken across multiple sites, which will save on energy costs to our tenants.

As always the best way of saving energy is to avoid using it in the first place, so please continue to be vigilant across your building, and turn lights off where they are not required, turn off equipment that is not is use and report any faults to your respective helplines so that they can be addressed.

If you would like to discuss your current utility provision or get involved in sustainability on your sites, please contact

CHP Green Plan - a greener CHP, a greener NHS (PDF)

In March 2022, CHP published our 'Green Plan: A Greener CHP a Greener NHS'. We are embedding our Green Plan into our business, committing resources, supporting staff taking action to ensure it is a success.

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