Step 3.8 Define specifications for purchasing energy supply
This step is relevant to section 4.5.7 of the ISO 50001-2011 standard.
An important part of procurement in an energy management system (EnMS) involves acquiring an adequate supply of energy with acceptable quality to maintain ongoing operations. Identifying suppliers who provide energy at a competitive price should also be a consideration. Developing purchasing specifications for sources of energy helps ensure the availability of a sufficient quantity of energy with acceptable quality and at a reasonable price.
How to do it
There is one task associated with defining specifications for purchasing energy supply:
3.8.1 Develop documented specifications for energy supply
ISO 50001 requires that your organization define and document specifications for the purchase of energy supply. The energy requirements for your organization may be adequately addressed by the local supplier(s) and perhaps you do not require special considerations. In this case, the supplier can typically provide the specifications for the energy you are being supplied or it may be specified in your contract, along with the rates. For example:
You are a commercial business in an office building with standard office equipment and your only energy need is a source of 240 volt AC power. Request the electrical supplier to provide you with specifications associated with this energy supply. Specifications may be integral with the rate structure provided with your contract. Many utilities provide the rates online.
On the other hand, your organization may have special needs or there may be other considerations for selecting and purchasing the energy needed for your facility. If your organization has unique energy supply requirements you may have to develop the specifications necessary to meet your needs. The development of an energy supply purchasing specification can depend on:
Equipment requirements
Energy availability
Facility location
Manufacturing process requirements
Environmental regulations
Other governmental regulations
For example:
Governmental regulations – Governmental regulations specify that a new facility must use the local electrical utility provider if the connected load of the facility will be less than 900 kilovolts. Above 900 kilovolts the organization can select their provider with a competitive bid process. The local supplier may allow few variations in the characteristics or rates of the energy supplied. If the load is large, competition may allow more flexibility in the energy specifications.
Manufacturing process requirements – A carpet manufacturer uses a direct-fired dryer. Because the carpet comes in contact with combustion products, a clean fuel like natural gas or propane is required. Fuel oil or solid fuels are excluded since contact between the finished product and combustion gases could result in contamination with soot or ash.
Specifications you may need to consider for your energy supply can include requirements related to quality, quantity, reliability and cost. Examples of each these factors include:
Quality
Maximum moisture content in coal
Maximum sulfur content in fuel oil
Minimum Btu content in fuels
Acceptable voltage variation
Minimum power factor
Quantity
Amount
Delivery requirements
Reliability
Allowable quality variation
Allowable delivery variation
Interruptible acceptance
Cost factors
Cost per unit
Cost for non-interruption
Demand cost
Delivery cost
Develop the energy purchasing specifications to ensure the effective use of energy. The effective use of energy means the energy characteristic will contribute toward maximizing energy performance while providing no or limited negative consequences. As an example:
Your organization is using fuel oil as a process fuel. Consider the sulfur content of fuel oil as a factor relating to effective use of it as an energy source. Sulfur dioxide emissions are tightly controlled in many areas. High smog alert days may impact the ability of your organization to use fuel oil if the sulfur content is too high. Consequently, sulfur content will influence the effective use of fuel oil as an energy source.
To help you develop purchasing specifications for energy supply, you may want to use the Energy Purchasing Specification Worksheets. The worksheets will help you identify important energy supply parameters and formulate suitable purchasing specifications. Purchasing specifications are dependent on the energy source so this resource includes separate tabs for electricity, natural gas, fuel oil and solid fuels. Since effective use of energy is an important consideration in purchasing, the worksheet contains a column for rating whether or not the purchasing factor influences effective use.
Document the energy supply specifications to ensure the energy source, delivery, price, invoicing, payment and contracting requirements are known by potential vendors and satisfied by selective purchasing. To help you prepare energy purchasing documentation, energy source specifications can be developed using the Energy Purchasing Specification Worksheets, along with input from your procurement and legal departments. Consult your procurement specialists for help with delivery, invoicing and payment requirements and legal analysts for assistance with contractual issues. Document the energy purchasing specifications to ensure that initial and future energy supply will meet all requirements. The Energy Purchasing Specification Summary can be used to help organize the information needed for purchasing of energy supply.
Resources & Examples
These resources will help with the identification and organizing of information needed to develop energy purchasing specifications:
The following resource is designed primarily for organizations that plan to seek third-party certification to ISO 50001-2011. It helps you understand how to check and use your EnMS records to demonstrate the implementation of the system (you are doing what you say), and the effectiveness of the system in generating the intended results (what you are doing is working).
