Procurement - electricity framework agreement: 2019 to 2024

 

Overview

National framework agreement for the supply of electricity for the Scottish public sector.

What is in scope

Electricity supply for: half hourly, non half hourly and domestic metered sites, and unmetered supply points. 

Who can use this

The framework can be used by:

• central government
• health
• local authorities
• universities and colleges
• third sector
• other public bodies

Note: It is the responsibility of any buying organisation wishing to use the framework agreement to satisfy itself that it is eligible to do so.

Entitlement can be established from the terms of the OJEU advert and guidance on this can be found in Annex A of Scottish Government Guidance on Framework Agreements. If there is any doubt, legal advice should be sought.

Benefits

The benefits of this contract are:

• estimated savings of £18 million over initial two year period
• improved customer service
• provision of a self-service web portal

Sustainability benefits include:

• option of Renewable Energy Guarantee of Origin (REGO) certificates at a fixed rate
• a range of Energy Efficiency Services available as additional services
• framework designed to facilitate renewable energy Power Purchase Agreements
• ability for public bodies to sell self-generated renewable energy back to the grid via a Power Purchase Agreement
• provision of additional technical support and guidance around electrical connections for community energy schemes

Community and socio-economic benefits include:

• apprenticeship training programmes including apprentice schemes for EDF Energy’s renewables business in Scotland
• work experience placements for school pupils, funding transport and lunches to enable children from deprived areas to take part
• support for schools to engage in EDF’s supported education and training schemes including the Engineering Education Scheme (EES) and Go4SET programme with the Engineering Development Trust (EDT) Scotland in local high schools
• promote EDF Community Benefit funds to public bodies and support the identification of any opportunities that may be eligible for funding
• committed to using local supply chain partners and contractors wherever possible, promoting opportunities for SMEs and maximising the benefit to the local economy
• advertisement any sub-contact opportunities on Public Contracts Scotland web site

Fair Work Matters:

• Living Wage Foundation accreditation
• do not operate zero hours contracts
• do not use umbrella companies
• signed up to the Scottish Government’s Scottish Business Pledge

Supplier

EDF Energy Customers Ltd

Further information

Following a stringent procurement process as required by public procurement legislation, Scottish Procurement can now announce that the re-let of the  Framework for the Supply of Electricity has been  awarded to EDF Energy Customers Limited. 

The framework is for an initial period of three years, with options to extend for a further three annual extensions. Supply of electricity under the new framework is due to begin 1 April 2024, with an initial 12 month trading already commencing from 1 April 2023.

Sites will be transferred automatically from the current framework, subject to the annual Site Validation exercise which will be undertaken by EDF Energy Customers Ltd in December 2023. 

Further information regarding the new framework will be issued in the coming months.

The national frameworks for the Supply of Electricity and Supply of Natural Gas wholesale volumes are bought up to  2½ years in advance in tranches, following a proven ‘hedging’ purchasing strategy overseen by a cross-sectoral Risk Management Committee. The Committee comprises senior managers representing procurement, finance and energy management interests.

Whilst energy prices have risen to unprecedented levels because of global influences, the Scottish Government purchasing strategy has mitigated some of the increases for customers on the frameworks. However, given the substantially increased price risk that this market volatility has brought, the Risk Management Committee has temporarily suspended the on-boarding of all new customers with immediate effect in order protect the organisations currently using the frameworks from increased costs. Organisations that are currently customers (including some third sector bodies) will remain on the framework.   

The Risk Management Committee is currently reviewing a range of options to accommodate public and third sector bodies who do not currently use our energy frameworks.

In the meantime, Charities and other third sector organisations will be afforded some protection from rising bills via the Department for Business, Energy and Industrial Strategy, Energy Bill Relief Scheme and the follow on new scheme announced on the 9 January 2023 the Energy Bills Discount Scheme which will run from 1 April 2023 until 31 March 2024.

Public bodies wishing to access the national electricity contract must provide a signed agency agreement to Scottish Procurement.

This document delegates authority to Scottish Procurement to purchase electricity in the wholesale electricity market. 

As part of the agreement, public bodies must also provide site data information in the format required in the electricity contract data templates.

The agency agreement is included as annex A to the buyer’s guide. The buyer’s guide and site additions form are attached below.

Framework documents, including the associated supply agreement and EDF Energy Operational Process Manual, can be found on the Knowledge Hub.

If you are not registered to access this site and are eligible to use the framework please complete the attached template and send to procurementutilities@gov.scot

Scottish Procurement site addition form 12 April 2019

File type

Excel document

File size

12.3 kB

Electricity framework - Buyer's Guide: Jan 2021

File type

18 page PDF

File size

780.6 kB