Planning

Ofgem 2025-011 Benchmarking Services for OFTO Tender Rounds 10-14

OFGEM

  • Contract Timeline

    Publication Date

    16th April 2025 09:25:18 AM

    Planning Deadline

    26th June 2025 11:00:00 AM   14 days remaining

  • Contract Summary

    The OFTO team requires a benchmarking advisor to provide support on OFTO transactions and ensure that the most competitive pricing of any financial instrument is achieved at financial close. The advisor will need to demonstrate that a clear and transparent process is followed in arriving at this pricing. They will also ensure that the terms of financing of the three projects within Tender Round 10 (TR10), one project in Tender Round 11 (TR11), one project in Tender Round 12 (TR12) and three projects in Tender Round 13 (TR13) are favourable for consumers. Ofgem do plan on extending this work to Tender Round 14 (TR14) but the scope of this work is not yet known. The supplier shall provide expert advice on the hedging process up to and at Financial Close (FC) on TR10, TR11, TR12, TR13 and TR14. The scope of work is as follows: * Review the structure of the interest rate and inflation hedging profiles and calculations and confirm that this is an acceptable structure or alternatively provide review of the structuring of underlying GILT for pricing any public bond. * Provide indicative market pricing/updated pricing on all hedging and underlying GILT on request to ensure the most competitive rates are achieved. * Proactive alerts on material market movements which may impact the pricing, including forewarning of any market activity which may create volatility and advise on how to manage this. * Agree hedge term sheets/model outputs with the hedge providers where necessary. * Provide/review the proposed execution protocol for the required hedging and/or bond issuance and negotiate this protocol with the hedge bank(s)/providers as necessary. * Undertake offline benchmark pricing exercises to establish mid-market levels and ensure pricing is agreed as a margin over mid-level. * Identify any anomalies which may indicate additional margins for the hedge providers. * Coordinate dry run pricing leading up to the FC and manage a series of 'dry runs' with all relevant parties, including but not limited to Ofgem and its financial adviser(s)plus the FC execution call. * Advisors are also required to liaise directly with Ofgem on any issues identified.

  • Contract Details

    Open Contracting ID

    ocds-h6vhtk-0503b6

    Publication Source

    Find a Tender Service

    Procurement Stage

    Planning

    Procurement Method

    Open

    Procurement Method Details

    Open Procedure

    Procurement Category

    Services

    Tender Suitability

    Framework / DPS

  • Contract Classification

    CPV Code(s)

    CPV Division(s)

  • Awarding Authority

    OFGEM

    Buyer Name

    Alfie Ellis

    Buyer Email

    procurement2@ofgem.gov.uk

    Buyer Phone

    +44 2079013089

    Buyer Address

    10 South Colonnade

    London

    E14 4PU

    United Kingdom