0942 – Supply of Electricity and Gas utilities to Essex County Council

Essex County Council is responsible for procuring energy for its core estate and infrastructure – this includes circa 250 operational buildings (including offices, libraries, children's centres, youth and respite centres, country parks), highways, street lighting and other infrastructure. The number of operational buildings is expected to reduce as the Council's estate rationalisation programme progresses. The Council has a mix of electricity (half hourly and non-half hourly) and gas meters for its sites and infrastructure.

The Council seeks to procure flexible supply contracts for 2 lots – Lot 1 Electricity and Lot 2 Gas and via an Open procedure procurement exercise. Each Lot will be awarded to a single supplier for the contract duration. Each contract will be for an initial term of 3 years (commencing 1st October 2022), with an option to extend for up to a further 3 years, at the Council's discretion.

Bidders must be Ofgem licensed energy suppliers, and are required to offer a flexible supply contract, which encompasses the ability to forward purchase the commodity element via a trading desk using OTC (Over the counter) after the contract has been completed. In addition, bidders for Lot 1 Electricity must: (i) be able to provide sleeving arrangements under which any renewable electricity sourced from off-site renewable generators can potentially be included at an additional cost in the electricity supply contract should the Council choose to do so at a later date; and (ii) provide REGO (Renewable Energy Guarantees of Origin) backed renewable energy across the electricity portfolio.

Due to current market volatility, the Council will require Bidders to submit indicative Swing/Shape fees in their pricing schedules. This rate will not form part of the evaluation. Final rates will be agreed with the successful Bidder(s), using their submitted indicative rate as a benchmark.

Bidders must note that, due to the Council's ongoing estate rationalisation plans, consumption across both Lots is likely to decrease over the life of the contracts.

Annual consumption figures are:

Electricity (NHH and HH):
Number of sites: 317 // Total Annual Consumption: 39,495,720 kWh

Gas:
Number of sites: 114 // Total Annual Consumption: 17,198,184 kWh

Bidders must also note that is the Lots are for energy supply contracts only. The Council's bureau and trade desk services are contracted to a third party provider. Therefore, the Council will, from time to time, use its authorised third party provider to manage the supply contracts including, but not limited to, purchases of electricity and gas.