Petroleum products, fuel, electricity and other sources of energy

Tender description

The GLA is seeking to procure a single supplier framework to (a) provide fairer tariffs for Londoners, especially the fuel poor and (b) procure voids management services for Greater London (32 London Boroughs and the City of London) and Housing Associations for their voids housing stock within London, all of whom may call-off under this arrangement (see Additional Information, VI.3). The successful supplier will be responsible for (1) sourcing and supplying energy (gas and electricity), operating customer accounts, undertaking billing and collecting end customer payments and providing ancillary and related value-added services for residents in London and (2) providing Void Services to support London Boroughs, including the City of London, and Housing Associations for their voids housing stock within London. Further details of the Contracting Authorities are detailed in section VI.3 of this notice. 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. London has particular problems: 10 % of Londoners are in fuel poverty, levels of pre-payment meters are high, levels of switching are low and London has low installation levels of energy efficiency measures, smart meters, and solar panels. 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: Provision of fairly priced gas and electricity, especially geared towards those living in fuel poverty. 2. Customer service and branding: Exemplary customer satisfaction embracing technological improvements to enhance the customer experience. 3. Innovation: Innovating to help Londoners and especially those in fuel poverty so that they can better meet their energy needs and budget for them. 4. Integration with other energy programmes: Work with LBs, HAs and others to deliver cheaper energy, especially those in fuel poverty; and to interface with energy efficiency 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 (reinvested in energy or fuel poverty projects). 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 4-year term, with the option for an extension or extensions of up to 4 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 interactions will be performed by the Service Provider’s staff. All branded communication templates and customer facing websites, portal and apps will be signed off by the GLA, to ensure that customers are aware of the brand that they are being supplied by. The Service Provider’s estimated turnover across the 4-year term is c.279 000 000 GBP, based on customer numbers, average consumption, current prices and Voids Services. If the GLA choose to extend the call-off arrangement for a further four years an additional c.713 000 000 GBP estimated turnover may be realised. All numbers are estimates and not guaranteed; assumptions associated with customers acquired are set out in the procurement documents. There will be a marketing budget at the GLA’s discretion to promote the whole Energy for Londoners programme, including EfLSCo. Contractual performance levels will be measured against the Service Level Agreements.