1 / 15

Swindon Borough Council An Approach to Procuring Energy

Swindon Borough Council An Approach to Procuring Energy. Clive Wilce Energy Manager. Familiar With This?. SBC – Usual in house practice. Update data including msn,mpr,aqa,etc Tender preparation Internal clearances, procedures and permissions OJEU Tender Analysis & award contract.

hea
Download Presentation

Swindon Borough Council An Approach to Procuring Energy

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Swindon Borough CouncilAn Approach to Procuring Energy Clive Wilce Energy Manager

  2. Familiar With This?

  3. SBC – Usual in house practice • Update data including msn,mpr,aqa,etc • Tender preparation • Internal clearances, procedures and permissions • OJEU • Tender • Analysis & award contract

  4. Tender annually/bi-annually - is this cost effective? • All the former preparations • If a new Supplier/s – re-register the properties for VAT • Finalising contract with outgoing Supplier • Transferring supplies to new Supplier • Agreeing reads between outgoing and incoming Supplier - simple?!!!!

  5. Is there a Better Way? I think so

  6. Advantages of longer term contract/s Avoidance of: • Updating all the data • Tender preparation • Internal procedures and permissions • OJEU • VAT re-registration • Finalising contract with outgoing Supplier

  7. Advantages of longer term contract/s cont’d • Transferring supplies to new Supplier • Agreeing reads and the administration that is attributed to this process Advantages: • Likelihood of negotiating better terms & conditions • Better service (more customer focused) • Time to establish billing systems to suit your own organisation

  8. Advantages of longer term contract/s cont’d • Less likely to have delays in site works and meter connections

  9. Disadvantages • I cannot think of any • Can you?

  10. How do you achieve this with transparency? • Encourage Suppliers’ to submit a forward pricing methodology • Make clear that you are looking for openness and transparency • Allow at least 3 months in contract particulars to negotiate and finalise

  11. How was this achieved for GAS? • Agree at the outset non-gas costs • Agree that the supplier provides regular independent reports • Work in partnership with the supplier to achieve the best possible result • 350 days to lock into a price • Trust is required on both sides of the relationship

  12. How was this achieved for Electricity? • Pricing formulae agreed at the outset linked to market indices • Regular independent market reports provided • Work in partnership with your supplier to achieve the best possible deal • 350 days to determine when to buy • Trust is required on both sides of the relationship

  13. Identified savings for gas • New billing arrangements have saved around £35k • Savings attributed to officer time estimated to be £20k • Savings attributed to longer term contract £59k (Non-gas costs reduced by this amount in year 2) • Cost avoidance of £155k

  14. Identified savings for electricity • Sub-100kW £45k when compared with the standard pricing arrangement • New billing arrangements £20k • Officer time £15K • All savings have not been fully identified like for example cost avoidance

  15. Any Questions?

More Related