---
title: "0942 - Supply of Electricity and Gas utilities to Essex County Council"
ocid: "ocds-h6vhtk-031f9e"
canonical_url: "https://d3tenders.com/contract/?ocid=ocds-h6vhtk-031f9e"
markdown_url: "https://d3tenders.com/contract/ocds-h6vhtk-031f9e.md"
json_url: "https://d3tenders.com/contract/ocds-h6vhtk-031f9e.json"
source: "Find A Tender Service"
current_stage: "Award"
buyer: "ESSEX COUNTY COUNCIL"
published: "2022-08-08"
---

# 0942 - Supply of Electricity and Gas utilities to Essex County Council

Buyer: ESSEX COUNTY COUNCIL  
Current stage: Award  
OCID: ocds-h6vhtk-031f9e

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## Summary

Essex County Council has completed the procurement process for the supply of electricity and gas utilities. The council sought flexible supply contracts for 2 lots - electricity and gas - through an Open procedure procurement exercise. Each contract is for an initial term of 3 years, starting on 1st October 2022, with an option to extend for up to an additional 3 years. The electricity supply contract was awarded to DRAX ENERGY SOLUTIONS LIMITED, and the gas supply contract was awarded to SSE ENERGY SUPPLY LIMITED. The procurement method used was an Open procedure, and the key deadline for this contract was the award date.

This tender offers opportunities for Ofgem licensed energy suppliers who can provide flexible supply contracts with renewable energy options. Businesses well-suited to compete are those with experience in the energy sector and expertise in providing electricity and gas utilities. The council is located in Essex County Council and operates within the industry category of petroleum products, fuel, electricity, and other sources of energy. The procurement stage has reached the award phase, and the key dates and deadlines revolve around the contract start date of 1st October 2022.

## Notice

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 has procured flexible supply contracts for 2 lots - Lot 1 Electricity and Lot 2 Gas and via an Open procedure procurement exercise. Each Lot was 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 are Ofgem licensed energy suppliers and offer flexible supply contracts, 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.

### Lot Information

Electricity supply contract - flexible Purchase, combined non hourly and half hourly

Key selection criteria, in addition to the Selection Questionnaire, included the product specification, fixed costs, REGO, commission, basic trading requirement, default position, day ahead functionality, reforecasting, payment and process service, account management structure (including supplier meetings), site additions/removals, commodity and non-commodity invoicing, adherence to service level agreements, power purchase agreement requirements, electronic billing, pricing submission, T&Cs, web portal access, billing and volume variation. Bids were assessed on a 60:40 basis for price:quality (of which 5% of the quality score assessed social value) in accordance with the evaluation and award criteria set out in the tender documents. Tenders were awarded on a most economically advantageous tender basis. All evaluation and award criteria are set out in the tender documents. Pricing was broken down into half hourly and non-half hourly rates for the commodity (the cost of the energy itself including production, supply and supplier's margin) and non- commodity charges (including government levies and tax, and transportation and distribution charges). Quality questions will cover such topics as volume and risk management, invoicing, account management, renewable energy (REGO), environmental sustainability and social value. Successful suppliers will comply with a service level agreement (which will be included in the tender pack) for the contract duration, which is incorporated into the flexible supply contracts.

Renewal: Option to extend for up to a further 3 years, solely at the Council's discretion.

Gas supply contract - flexible Purchase

Key selection criteria, in addition to the Selection Questionnaire, included the product specification, pricing submission, T&Cs, fixed costs, commission, basic trading requirement, default position, day ahead functionality, reforecasting, payment and process service, account management structure (including supplier meetings), site additions/removals, commodity and non-commodity invoicing, adherence to SLAs, electronic billing and web portal access, billing and volume variation. Bids were assessed on a 60:40 basis for price:quality (of which 5% of the quality score assessed social value) in accordance with the evaluation and award criteria set out in the tender documents. Tenders were awarded on a most economically advantageous tender basis. Pricing was broken down into appropriate commodity rates for the Supplier (the cost of the energy itself including production, supply and supplier's margin) and non-commodity charges (including government levies and tax, and transportation and distribution charges), as per the pricing schedule. Quality questions covered topics such as volume and risk management, invoicing, account management, environmental sustainability and social value. Successful suppliers will comply with a service level agreement (which will be included in the tender pack) for the contract duration, which is incorporated into the flexible supply contracts.

Renewal: Option to extend for up to a further 3 years, solely at the Council's discretion

## Key Details

| Field | Value |
| --- | --- |
| Publication source | Find A Tender Service |
| Latest notice | https://www.find-tender.service.gov.uk/Notice/021753-2022 |
| Notice type | Tender Notice |
| Procurement type | Standard |
| Procurement category | Goods |
| Procurement method | Open |
| Procurement method details | Open procedure |
| Tender suitability | Not specified |
| Awardee scale | Large |
| All stages | Tender, Award |

## Dates

| Field | Value |
| --- | --- |
| Publication date | 8 Aug 2022 |
| Submission deadline | 8 Apr 2022 |
| Future notice date | Not specified |
| Award date | 25 May 2022 |
| Contract period | 30 Sep 2022 - 30 Sep 2025 |
| Recurrence | Not specified |

## Values

| Field | Value |
| --- | --- |
| Tender value | £50,400,000 |
| Lots value | £50,400,000 |
| Awards value | Not specified |
| Contracts value | £51,998,868 |

## Status

| Field | Value |
| --- | --- |
| Tender status | Complete |
| Lots status | Cancelled |
| Awards status | Active |
| Contracts status | Active |

## Buyer

| Field | Value |
| --- | --- |
| Main buyer | ESSEX COUNTY COUNCIL |
| Locality | CHELMSFORD |
| Post town | Chelmsford |
| Postcode | CM1 1QH |
| Country | England |
| ITL 1 | TLH East (England) |
| ITL 2 | TLH3 Essex |
| ITL 3 | TLH36 Heart of Essex |
| Local authority | Chelmsford |
| Electoral ward | Moulsham and Central |
| Westminster constituency | Chelmsford |
| Delivery location | TLH3 Essex |

## Supplier

| Field | Value |
| --- | --- |
| Number of suppliers | 2 |
| Supplier names | DRAX ENERGY SOLUTIONS; SSE ENERGY SUPPLY |

## CPV Codes

### Divisions

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

### Codes

- 09000000 - Petroleum products, fuel, electricity and other sources of energy
- 09120000 - Gaseous fuels
- 09310000 - Electricity

## Release History

- 8 Aug 2022 at 14:02 - Award - Award Notice - https://www.find-tender.service.gov.uk/Notice/021753-2022
- 9 Mar 2022 at 09:26 - Tender - Tender Notice - https://www.find-tender.service.gov.uk/Notice/006405-2022

## Notice URLs

- https://procontract.due-north.com
- https://procontract.due-north.com/
- https://www.essex.gov.uk/

## Provenance

This Markdown file is an alternate public rendering of the D3 Tenders contract record. The canonical page is https://d3tenders.com/contract/?ocid=ocds-h6vhtk-031f9e. The underlying structured data is available as OCDS JSON at https://d3tenders.com/contract/ocds-h6vhtk-031f9e.json.