Energy and related services

Tender description

Gateshead Council (the Council) intends to enter into a long-term concession agreement with Gateshead Energy Company Limited (GEC), for the operation and maintenance of its newly constructed district energy network (Network). GEC is a wholly owned subsidiary of the Council and was incorporated in August 2015. The proposed concession agreement will be granted for a term of 40 years. GEC will be required to pay the Council an annual concession charge for the on-going right to exploit the Network. GEC will enter into heat/electricity supply agreements directly with energy customers, including the Council. The Network has initially been constructed to provide heat and electricity to a number of Council owned buildings and to a limited number of third party customers. There is potential for the Council to extend the Network in the future. The construction of the Network was the subject of three competitive EU procurements tendered through OJEU. Please see below for more information. See Section II.1.4 Previous OJEU Notices for the Network: 2014/S 012-16180; 2014/S 117-206414; 2014/S 018-026987.