1819-0105 – Gas and Electricity supply 2020-2024

Islington Council invites suitable expressions of interest from suppliers for contract 1819-0105, Gas and Electricity supply 2020-2024, split into three separate Lots for Gas, 100KW Half-Hourly (HH) Electricity and Sub 100KW Non Half-Hourly (NHH) Electricity respectively.

Current status / Background

The council’s utilities purchasing strategy is flexible, aggregated (with external clients), risk-managed, and is based on purchasing tranches of gas and power against set trigger prices to ensure budget certainty. This flexible strategy of buying over a four-year period helps to mitigate any sharp increases in market prices. The contracts currently in place are due to expire on 31/3/2020.

This procurement is for a four-year contract with preferred supplier(s) to supply Gas and/or Electricity to the council.

Sites included in the contracts cover the council’s own portfolio of sites including, but not limited to, housing, public buildings, parks, libraries, children’s centres, schools, nurseries and leisure centres. In addition, the following external client sites are included:

City of London Academy, Prebend Street, London, N1 8PQ
Bridge London Trust, 251 Hungerford Road, London, N7 9LD
New North Academy, 32 Popham Road, London, N1 8SJ
New River College, Dowery Street, London, N1 0HY
St Mary Magdalene Academy, Liverpool Road, London, N7 8PG
William Tyndale Academy, Upper Street, London, N1 2GG

The requirement

Islington Council invites tenders from industry regulated suppliers for Gas and Electricity. The contract period is for four years from 1 April 2020. Suppliers must hold a current Industrial and Commercial supply license as issued by Ofgem and must be able to offer flexible procurement and a wide range of billing options.

Lots

The contract is split into 3 Lots:

Lot 1 – Supply of Gas – estimated annual value - £3,100,000 (as per 2017/18 rates)
Lot 2 – 100KW HH Electricity – estimated annual value - £1,900,000 (as per 2017/18 rates)
Lot 3 – Sub 100KW NHH Electricity - estimated annual value - £3,000,000 (as per 2017/18 rates)

TUPE [Transfer of Undertakings (Protection of Employment) Regulations]

Potential providers must be aware that TUPE may or may not apply to this service. Further details will be available in the invitation to tender.

Contract Period

The contract period will be for 48 months from an estimated start date 1 April 2020.

Contract Value

The estimated total value of this contract is £32 Million over the maximum 48 months’ term of the contract. This is based on £8 Million per annum. This is value of the contracts is split 70% Council and 30% External Clients.

Terms and Conditions

Tenderers are requested to submit their Standard Terms and Conditions of supply, which will be reviewed by the Council’s Legal Department prior to any award of contract.

Award criteria

The contract will be awarded to the Most Economically Advantageous Tender (MEAT) in accordance with the Public Contracts Regulations. MEAT for this contract is cost 100%.

We reserve the right to interview leading bidders.

Procurement Process

This contract will be procured using the Open Procedure. The Open Procedure means that all bidders who successfully express an interest will automatically be invited to tender and have access to the tender documents. Those who submit a tender and meet the minimum requirements will have their full tender pricing evaluated.