18 August 2008 | Paul Snell
The Scottish Government has launched a tender to supply electricity to the whole of the country's public sector.
The nation spends around £200 million of public money on electricity each year and the contract will be open to all public organisations, including councils, schools, hospitals, the emergency services and government agencies.
The government believes it can get better value for money through guaranteed pricing and greater purchasing power, while tackling rising energy costs.
The contract, to be awarded at the end of the year, will run from October 2009 to September 2012, with the opportunity of a year's extension.
"The national procurement of electricity will be important in minimising the impact of spiralling prices of energy," said finance secretary John Swinney. "As well as getting best value for money, this will support the government's efforts to reduce greenhouse emissions and make Scotland greener."
The deal will also give the public sector advanced metering and opportunities to sell electricity back to the grid. But, Swinney added, the deal would only be successful if public sector organisations committed to using the contract and take-up was high.
The OGC is also currently working on a collaborative deal for energy for the public sector. Chief executive Nigel Smith recently described the 250 OJEU notices issued in the past two years for energy deals as "a waste of time and money" (News, 31 July).