28 Jul 11

EDF Energy is awarded UK’s largest ever electricity supply contract following a competitive tendering process




- Hospitals, schools, motorways and museums to be powered by EDF Energy and benefit from the company’s energy efficiency and sustainability expertise –


Government Procurement Service has awarded the UK’s largest ever electricity supply contract by annual volume to EDF Energy following a successful tender process.


The framework agreement will see EDF Energy supply electricity and energy related additional goods, works and services to the NHS, Ministry of Defence, Ministry of Justice, Metropolitan Police, London Underground, the Highways Agency and other bodies across central and local government.


As part of the deal, EDF Energy will initially supply in the region of 30TWh of electricity over a four-year period from April 2012, although this volume could rise significantly during the lifetime of the agreement, dependent on uptake of additional public sector bodies to the framework. The volume supplied each year will be higher than under any previous electricity supply contract in the UK.


This initial volume is the equivalent of powering 2.3 million typical households over the same period.


The framework agreement is the outcome of a tender process run by Government Procurement Service, an executive agency of the Cabinet Office which delivers centralised procurement services for Central Government Departments and the wider UK public sector.


The agreement provides for supply to thousands of public buildings across England and Wales including hospitals, police stations, defence sites, courts and major cultural assets including the British Museum and National Gallery.


As well as electricity supply, EDF Energy will provide strategic and practical sustainability advice to help Government departments use energy more efficiently and reduce emissions.


Vincent de Rivaz, CEO of EDF Energy, said:


“We are proud the Government has placed its trust in us to supply power and energy efficiency advice to public services that millions of people depend on every day.


EDF Energy will be powering a vast range of public buildings across England and Wales, from inner city academies to some of the UK’s most treasured museums, from central Government departments to major hospitals.


As the UK’s largest supplier of electricity to businesses and the leading generator of low carbon electricity, we have the expertise to support the Government in its sustainability agenda, improve energy efficiency and reduce carbon emissions.”


This pan-Government framework agreement for the supply of electricity and additional goods, works and services to a portfolio of customers covers sites where electricity usage is large enough to be metered on a half hourly basis.


As a result of the agreement, the portfolio of customers will also have access to EDF Energy’s wide-ranging energy services offerings and will benefit from the EDF Group’s research and development facility in France, the largest of its kind in Europe. This expertise will be available to help Government Procurement Service and its customers meet Government’s target of a 25 per cent reduction in greenhouse gas emissions by 2015 from a September 2010 baseline (Greening Government Commitments).


NOTES



Tender process


  • In April 2011, Government Procurement Service (formerly Buying Solutions) published an invitation to tender for the supply of electricity to sites metered on a half hourly basis to its portfolio of customers across two bidding lots.
  • The invitation to tender was for a four-year deal covering a portfolio of customers with an annual electricity consumption of about 7.6TWh.
  • Both parties believe this to be the largest ever electricity supply contract in the UK (eclipsing a previous framework agreement between British Energy and Network Rail in 2006).
  • In May 2011, EDF Energy submitted a binding tender response to Government Procurement Service for the supply of electricity to sites metered on a half hourly basis, to both lots of the portfolio.
  • Within the response, EDF Energy demonstrated capabilities including flexible purchasing, export arrangements, access to varying market indices, first class customer service and the ability to provide energy services.
  • On 30th June 2011, EDF Energy received notification that Government Procurement Service intended to award both lots to EDF Energy.
  • On 28 July EDF Energy and Government Procurement Service signed the framework agreement.