Auction software package

Tender description

The purpose of this Prior Information Notice (PIN) is to: (i) inform the market of a prospective contract opportunity in connection with the procurement of an auction platform and related services by the UK government for the auctioning of greenhouse gas emissions allowances from late 2017 as part of continued implementation of Phase III of the EU Emissions Trading System (EU ETS); and (ii) request information that may be relevant to the procurement strategy that may be adopted by the contracting authority. The EU ETS is at the heart of UK Government policy to tackle climate change. The system covers sectors responsible for around half of the UK's carbon dioxide emissions. The EU ETS works on a ‘cap and trade’ basis. A cap is set on EU Member State's emissions, which declines over time. Allowances can be allocated for free or auctioned by Member States. Commission Regulation (EU) No 1031/2010 of 12.11.2010 on the timing, administration and other aspects of auctioning of greenhouse gas emission allowances (the ‘Auctioning Regulation’) sets out the regulatory framework for auctioning general allowances (EUAs) for phase III of the EU ETS (2013-2020) and for aviation (EUAAs). Pursuant to Article 30(1) of the Regulation, the UK has opted to retain its own national auction platform to auction its share of allowances upon expiry of the contract with the national auction platform current supplier in November 2017. The auction platform will provide the services including: a) auctioning of allowances for the UK pursuant to Article 31(1) (which in turn refers to the obligations in article 27) of the Auctioning Regulation; b) assisting in the development of the UK auction calendars. The contract will cover auctions of the UK's share of both EUAs and EUAAs and will initially be expected to run for three years, with an option to extend for a further two years, subject to satisfactory performance of the supplier and Ministerial consent. This is in line with the current provisions in the Auctioning Regulation. For further information please scroll down to II.7 — Additional Information.