Tender

Gas Shrinkage

WALES AND WEST UTILITIES

This public procurement record has 1 release in its history.

Tender

16 Dec 2024 at 11:55

Summary of the contracting process

Wales and West Utilities (WWU) is seeking to procure services related to gas shrinkage, with a focus on gaseous fuels, categorized under the industry sector of goods. This tender is active and is currently in the tender stage. The operation will primarily take place within the UK, and interested parties need to be registered on WWU's BravoSolution platform to participate, with the submission deadline set for 8 January 2025. This procurement is facilitated through a selective and restricted procedure, requiring electronic submissions via the provided BravoSolution platform link.

This tender offers significant opportunities for companies specializing in gas procurement services, particularly those capable of managing daily gas shrinkage requirements and providing comprehensive reporting on gas transactions. Businesses experienced in the transportation, distribution, and management of gaseous fuels would be well-suited to participate. The contract involves handling approximately 28,000 therms of gas per day, with the potential for business growth by collaborating closely with a major utility provider like Wales and West Utilities and offering value-added services such as daily bulletins or monthly industry updates. The total procurement value is estimated at £35,000,000, marking a substantial business opportunity.

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Notice Title

Gas Shrinkage

Notice Description

WWU is required to purchase gas which is predominantly gas which is unaccounted for or used in connection with the operation of its network in accordance with Section N of the Uniform Network Code (UNC). Under UNC rules, Shrinkage Gas is dealt with on a daily basis with Wales & West being required to acquire gas to meet its daily Shrinkage Gas requirement. Shrinkage Gas comprises: * Own use gas - gas used by WWU in connection with the operation of its network including gas used in running compressors, gas used for preheating and vented gas * Unaccounted for gas - gas which is lost or otherwise not accounted for as offtaken from its network including gas lost or unaccounted for by reason of unidentified theft and leakage WWU are allowed to recover the market related costs of purchasing a pre-determined target daily volume of Shrinkage Gas in each year via its regulated transportation revenue.

Lot Information

Lot 1

WWU requires an Agent to provide a Shrinkage Procurement Service which includes nominating, transacting and purchasing the daily Shrinkage Gas quantities on behalf of WWU. At the end of each month, the Agent should provide a report setting out the cost of all gas transactions for the month, identifying separately the Agent's management fee. The level of gas we require is based on a set daily amount of approximately 28,000 therms per day. The precise volumes will be known in advance of 1st April each year. The profiling of the gas purchases within the year may differ, however this will be communicated in advance. All daily volumes will be nominated to WWU's Shrinkage Gas Account on a daily basis such that the account attracts no imbalance/cash out charges on any day. All transactions will be at National Balancing Point (NBP) under NBP terms. We require a cost per therm for carrying out the procurement services as outlined above and a brief summary of the other benefits of procuring your services such as daily bulletins or monthly industry updates which would be made available. The market related costs are calculated using the gas price based on the Closing Day Ahead Heren or Weekend Offer price on each day, so Wales & West strategy is purchase at this gas price.

Publication & Lifecycle

Open Contracting ID
ocds-h6vhtk-04c84e
Publication Source
Find A Tender Service
Latest Notice
https://www.find-tender.service.gov.uk/Notice/040421-2024
Current Stage
Tender
All Stages
Tender

Procurement Classification

Notice Type
Tender Notice
Procurement Type
Standard
Procurement Category
Goods
Procurement Method
Selective
Procurement Method Details
Restricted procedure
Tender Suitability
Not specified
Awardee Scale
Not specified

Common Procurement Vocabulary (CPV)

CPV Divisions

09 - Petroleum products, fuel, electricity and other sources of energy


CPV Codes

09120000 - Gaseous fuels

Notice Value(s)

Tender Value
£35,000,000 £10M-£100M
Lots Value
Not specified
Awards Value
Not specified
Contracts Value
Not specified

Notice Dates

Publication Date
16 Dec 20241 years ago
Submission Deadline
8 Jan 2025Expired
Future Notice Date
Not specified
Award Date
Not specified
Contract Period
Not specified - Not specified
Recurrence
Not specified

Notice Status

Tender Status
Active
Lots Status
Active
Awards Status
Not Specified
Contracts Status
Not Specified

Contracting Authority (Buyer)

Main Buyer
WALES AND WEST UTILITIES
Contact Name
Bec Jones
Contact Email
bec.jones@wwutilities.co.uk
Contact Phone
+44 7969844468

Buyer Location

Locality
NEWPORT
Postcode
NP10 8FZ
Post Town
Newport
Country
Wales

Major Region (ITL 1)
TLL Wales
Basic Region (ITL 2)
TLL5 South East Wales
Small Region (ITL 3)
TLL54 Monmouthshire and Newport
Delivery Location
Not specified

Local Authority
Newport
Electoral Ward
Tredegar Park and Marshfield
Westminster Constituency
Newport West and Islwyn

Open Contracting Data Standard (OCDS)

View full OCDS Record for this contracting process

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