The Procurement Agency for Essex Evaluate Options for Energy Procurement

Oct 2005

In the last 12 months (as at Oct 2005) gas prices have risen nationally by approximately 70-90% and electricity by some 20-30% (Source ‘Supply Management’ Oct, 2005.). According to PAE spend analysis Essex Councils spent approximately £18 million in the last financial year on electricity and gas and this figure could rise to £25 million if increases continue at the same rate.

Between April and July 2005 the PAE commissioned leading energy consultants John Hall & Associates to benchmark their existing energy management operation.

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This work enabled the PAE to analyse their current spend and differing procurement approaches with a view to:

  • Providing PAE members with enough independent information to make an informed decision around existing and future procurement options for the supply of electricity and gas
  • Determining whether a collaborative approach is possible and/or appropriate
  • Understanding the best practices around energy procurement
  • Providing an independent appraisal of the various options that are available for the procurement and supply of electricity and gas
  • Providing a guidance and reference document clarifying key facts and figures in relation to the energy baseline position of PAE member Councils

While the report has been produced specifically for the PAE members, SPS and the PAE believe that its findings and recommendations are relevant and useful for all local authorities. Please contact the PAE director, Peter Quinn (peter.quinn@paessex.gov.uk) for more information.