CROWN COMMERCIAL SERVICE LAUNCHES NEW SUPPLY OF ENERGY 2 AGREEMENT

Crown Commercial Service (CCS) is pleased to announce the award of our new and improved energy agreement – Supply of Energy 2. This agreement will become the biggest energy contract ever awarded in the public sector, and is expected to supply up to £51 billion of electricity and gas – saving central government and wider public sector organisations over £2 billion.

The new agreement will eventually replace CCS’ existing Supply of Energy and Ancillary Services (RM6011) agreement, and is designed to help organisations overcome many of the challenges presented by today’s complex energy market.

Energy Pricing Options Tailored To Suit Business Needs

The UK energy markets are experiencing an unprecedented period of price volatility. This agreement will help to protect UK public sector customers from some of this volatility by ensuring that their energy is purchased by CCS expert gas and electricity trading teams through a suite of aggregated risk management products.

Our Supply of Energy 2 agreement gives customers more control over rising costs, protecting them from pricing volatility. In addition, customers can benefit from our team’s extensive knowledge and expertise in the energy market.

John Malone, Deputy Director for Energy at Crown Commercial Service, explains: “Our Supply of Energy 2 agreement is the culmination of extensive market engagement between CCS, our customers, and UK energy suppliers. By addressing important pain points such as market volatility, contract complexity, cyber vulnerability and the various challenges associated with national net zero ambitions, we are well positioned to meet the evolving needs of our customers, now and in the future.”

Users of the new agreement will benefit from: buying through expert in-house energy traders with years of experience procurement process and contract drafting supported by specialist legal advice

• a suite of customer baskets to suit risk appetite and business needs

• provides all siteworks and metering services named account managers and a dedicated customer service team enhanced protection from cyber security threats through Cyber Essentials Plus

• highly competitive management and administration fees

• full compliance with all of the latest procurement policy requirements

THE ROUTE TO CLEANER, GREENER ENERGY

In the UK, energy supply accounts for 16.9% of UK emissions. Reducing this footprint is essential for meeting carbon net zero targets. If you own, operate or are responsible for any buildings, you can choose to change the type of energy you use, reduce energy demand, or both.

The demand for power to charge cleaner road transport and heating is increasing the need for the supply of clean, renewable power generation. As renewable energy sources’ penetration levels improve, they will continue to support new business models for low-carbon energy projects.

The new Supply of Energy 2 agreement aims to support customers throughout their decarbonisation journey. Our agreement gives customers access to vital resources, including energy saving advice, access to carbon offsetting credits and allowances, support with carbon reporting, plus a range of other decarbonisation services.

This agreement supports net zero ambitions by providing:

• enhanced provisions for sleeving PPAs

• clean zero carbon energy

• energy saving advice

• access educational energy webinars, bulletins and events carbon offsetting credits and allowances data and portfolio management support with carbon reporting a range of other decarbonisation services

Integrate Power Purchase Agreements Into Supply Contracts

The new agreement also integrates Power Purchase Agreements (PPAs), which allow customers to purchase a proportion of their electricity requirements directly from a renewable electricity generator, such as a wind turbine or solar farm.

“Contracts that support PPAs can be notoriously complex. Our new energy supply agreement simplifies the process with a number of provisions that allow customers to integrate their PPAs directly into their supply contracts,” says John.

Customers will start to be supplied through this new agreement from April 2024, with different groups of customers being transitioned across from the current agreement in stages from April 2024 to April 2026.

Let Us Add Power To Your Energy Procurement

To learn more about the new agreement, please visit https://www.crowncommercial.gov.uk/ agreements/RM6251