LSH, working with specialist energy risk management company Power Efficiency, is purchasing energy in bulk on the wholesale market on behalf of its clients in a bid to reduce annual energy bills by up to 20 per cent.

The deal also gives LSH the ability to purchase green power for its nationwide network of offices as well as for the company's managed clients in South Yorkshire and further afield.

Tim Austin, from LSH's Sheffield office, says: "This contract means we can purchase green energy for all of the commercial properties we manage as well as make procurement savings by purchasing for local and nationwide clients simultaneously. This level of bulk buying energy on the wholesale market can achieve major annual savings for our clients. We are already on target to save £400,000 in 2008/9."

Traditionally, companies have purchased energy annually on a fixed price contract. Power Efficiency has now developed a risk management strategy for LSH which enables it to buy directly from the wholesale market in seasonal blocks on behalf of all of the company's property management clients.

The flexible nature of the agreement with Power Efficiency also enables clients who dispose of buildings to be released from the contract without penalties, as well as allowing new key clients to join at any time during the three year contract period.

Mark Callaway of Power Efficiency says: "Working with major UK-wide corporates such as LSH means that we can effectively bulk buy energy on behalf of its key clients across the country.

"We have two key objectives as part of this risk management strategy. The first is to set a cap on LSH client's energy costs to allow for budgeting and the second is to exploit the opportunities offered in the wholesale market so that we can make savings during favourable market conditions."

In addition to procurement strategy savings and sourcing green energy supplies for its clients, LSH has rolled out an environmental audit service to help maximise the performance of client's properties in order to further reduce operational costs and manage their carbon footprint.

LSH's audit service will involve a full examination of the fabric of buildings and a detailed assessment of the emissions and utility consumption of properties. They investigate the management and operation of buildings, including the performance of mechanical and electrical plant such as boilers and ventilation systems, energy and water use, as well as planned and preventative maintenance schedules.

Making recommendations to owners and occupiers on how the environmental performance of properties can be improved the firm will also provide clients with detailed reports.

Tim concludes: "This is a comprehensive two-fold approach to reducing client costs.

Initially we can make savings by bulk buying on behalf of our property management clients, able the purchase of green energy and we can also reduce the amount of energy required to run a building following our expert energy audits.

"This will also enable clients to reduce the carbon footprint of their property portfolio, helping to satisfy the environmental demands and expectations of investors, shareholders and customers."