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Energy Framework Agreement
23 July 2007
Redditch Borough Council has recently entered into an innovative Framework Agreement for procuring energy. The agreement, which commenced on 01 June 2007, will streamline the administration activities associated with procuring gas and electricity for the next four years.
Five suppliers - Bizz Energy, Corona Energy, EDF Energy, Eon Energy and Scottish and Southern Energy - were selected to participate in the agreement, following a tender process carried out in accordance with OJEU procurement procedures. The suppliers all had to meet exacting standards in terms of account management, availability of consolidated and electronic billing, energy management data, availability / willingness to supply CCL-exempt energy and support for smart-metering technologies.
Redditch ran the first mini-competition to be held under the Framework Agreement during June 07. Using the contact network established under the agreement, the five suppliers were invited to submit prices for new, two year supply contracts covering all of Redditch's gas and electricity supplies. The mini-competition was a great success. It took just 16 working days to complete and all suppliers submitted full responses to the request for pricing. In addition, Redditch's requirements for CCL-exempt energy were fully satisfied. Jim Prendergrast, Head of Property Management Services at Redditch Borough Council said " We are delighted with the way the new process has delivered competitive prices and met our "green" energy requirements. We have a new procurement tool which simultaneously reduces our admin costs and improves our responsiveness to changes in market conditions. This is a real step forward".
The agreement was set up with the help of the Council's Utility Management Advisors, Smith Bellerby, who also provided crucial support in preparing for the mini-competition; analysing the responses from suppliers and managing the handover to the successful bidders.
One of the significant benefits of the agreement is that other Local Authorities and Public Bodies within the West Midlands area can use it to purchase their own gas and electricity. As Jenny Smith from Smith Bellerby commented "all the basic groundwork to comply with OJEU purchasing rules has already been done. All authorities need to do is organise and run a mini-competition using the supplier contacts we have identified. Suppliers will respond to requests for pricing within 15 working days, but this may be shortened even further under some circumstances". Jonathan Jones from the West Midlands Centre of Excellence (WMCoE) is keen that other Authorities know about the agreement and are able to take advantage of it. Copies of the documentation and instructions on how to make use of it will be made available via WMCoE's Procurement Hub. http://procurementhub.wmcoe.gov.uk/
If you require more information about the Framework Agreement and how it can help you streamline your energy purchasing, please contact: Jenny Smith on 01952 825820.