Published date: 14 May 2018

Closed opportunity - This means that the contract is currently closed. The buying department may be considering suppliers that have already applied, or no suitable offers were made.


Closing: 15 June 2018

Contract summary

Industry

  • Petroleum products, fuel, electricity and other sources of energy - 09000000

  • Gas-distribution network - 44161110

  • Public utilities - 65000000

    • Energy-management services - 71314200

    • Energy-efficiency consultancy services - 71314300

Location of contract

London

Value of contract

£992,000,000

Procurement reference

TFL001-DN336524-11444040

Published date

14 May 2018

Closing date

15 June 2018

Contract start date

28 February 2019

Contract end date

28 February 2023

Contract type

Service contract

Procedure type

Competitive dialog

Contract is suitable for SMEs?

Yes

Contract is suitable for VCSEs?

No

Description

The Mayor's ambition is for London to be zero carbon by 2050. The Mayor also wants the energy market to work better for Londoners, delivering fairer prices, helping them reduce their energy use and make the best use of smart innovations. The GLA procurement is open to innovative ideas that will deliver its desired outcomes and wants to establish a genuine collaboration with a company or consortium to achieve them.
The Contracting Authorities seek to procure a fully licensed energy supplier to offer the supply of gas and electricity to all of London's residents using branding set up by the GLA under the Mayor of London's Energy for Londoners programme; and to undertake Voids Services for London Boroughs (LBs) and Housing Associations (HAs).

The key eight objectives are:
1. Competitively priced electricity and gas tariffs
2. Customer service and branding: Exemplary customer satisfaction
3. Innovation: Innovating to help Londoners and especially those in fuel poverty to better meet their energy needs and budget for them.
4. Integration with other energy programmes
5. Data access: Provide access to all EfLSCo customer consumption data, for the GLA, LBs, contractors and research partners.
6. Financial: Generate a commission, without affecting the competitive viability of tariff structures.
7. Support the possible future transition to a fully licensed supplier or to another Service Provider.
8. Void Services: Support handling vacant properties, including installation of smart meters during void periods.

The Contracting Authorities are setting up a four (4) year Framework Agreement. The EfLSCo scheme will be delivered via a Call-Off from the Framework Agreement based on a four-year term, with the option for an extension or extensions of up to four more years. The LBs and HAs detailed may enter into Call-Off Contracts under the Framework Agreement for Voids Services.
The procurement will follow the Competitive Dialogue procedure (under PCR 2015) to allow for the agreement scope and commercial arrangements to be developed and negotiated during the process, using an outcome based specification. During this process, comments will be invited on draft framework and call-off contracts at Initial Tender. Upon issue with the Final Tender, Framework and call-off contracts final terms must be accepted.
Securing and management of the EfLSCo customers will be handled by the Service Provider, and all interactions will be performed by the Service Provider's staff. The estimated turnover that the Service Provider would be able to generate across the four-year term is of the order of £279 million, including Voids Services. If the GLA choose to extend the call-off arrangement for a further four years an additional £713 million estimated turnover may be realised. All numbers are estimates and are not guaranteed by GLA and assumptions associated with customers acquired are set out in the procurement documents.

More information

Links

Additional text

Bidders will need to a supply licenses under the Electricity Act 1989 and Gas Act 1986 for the supply of electricity and gas respectively and have completed Controlled Market Entry before from the project Launch Date.

About the buyer

Contact name

Nadeem Iftikhar

Address

55 Broadway
LONDON
SW1H 0BD
England

Email

NadeemIftikhar@tfl.gov.uk

Website

https://tfl.gov.uk