Purchase and Supply of Electricity for sites within South West Water Limited

Description

South West Water Limited is seeking (as a centralised purchasing body on behalf of itself and other subsidiaries within the Pennon Group from time to time) to enter into a framework with a single supplier for the flexible supply and management of electricity to both regulated utilities and other subsidiary entities within the Pennon Group for a five year period from 1 April 2027 to 31 March 2032. The ability to forward purchase volumes as part of the Group hedging strategy is required in the time preceding this period. The Pennon Group is a large consumer of energy across a portfolio of c. 2500 sites with a range of connections. The Pennon Group's sites provide drinking water and sewerage services to customers within Devon and Cornwall with additional drinking water only services to customers around Bristol, Bournemouth, Christchurch and Sutton and East Surrey. Current annual supply volumes are c. 450 GWh and it is anticipated that this will increase over the term of the framework due to growth in treatment quality and served population and also potential investments/acquisitions. At the time of this notice, the current subsidiary entities within the Pennon Group whose sites will covered by this procurement are South West Water Limited, Sutton and East Surrey Water plc, but bidders should note that this list of contracting entities which may call off supplies under this framework may change and/or increase over time in the event of further investments/acquisitions by the Pennon Group and/or any group restructuring. Lot 1: South West Water Limited is seeking (as a centralised purchasing body on behalf of itself and other subsidiaries within the Pennon Group from time to time) to enter into a framework with a single supplier for the flexible supply and management of electricity to both regulated utilities and other subsidiary entities within the Pennon Group for a five year period from 1 April 2027 to 31 March 2032 with a unilateral break option for South West Water Limited at the end of the third year on giving 6 months' notice. This break clause will only be exercised in exceptional circumstances and if exercised, then the supplier will be expected to work with the Pennon Group to protect commodity trades already executed. Bidders should please note that it is anticipated that the management of electricity supply will be conducted for the Group by South West Water Limited at the framework level and this will also be expressly acknowledged and authorised by the Pennon Group contracting entities when entering into call-off contracts under the framework, including authorisation for South West Water Limited to make orders on behalf of the relevant contracting entity. It is then intended that the electricity supply will be implemented through call-offs with specific Pennon Group contracting entities. South West Water Limited is running this procurement using the Negotiated Procedure with prior call for competition under Regulation 47 of the Utilities Contracts Regulations 2016. The Pennon Group is a large consumer of energy across a portfolio of c. 2500 sites with a range of connections from small single-phase unmetered telemetry supplies to treatment sites with complex arrangements and connection capacities of several MVA. The Pennon Group's sites provide drinking water and sewerage services to customers within Devon and Cornwall with additional drinking water only services to customers around Bristol, Bournemouth, Christchurch and Sutton and East Surrey. For reference, please see coverage map in the "Supplier Instructions" document for this procurement on the Pennon Supplier Portal. Current annual supply volumes are c. 450 GWh and it is anticipated that this will increase over the term of the framework due to growth in treatment quality and served population and also potential investments/acquisitions. At the time of this notice, the current subsidiary entities within the Pennon Group whose sites will covered by this procurement are South West Water Limited and , Sutton and East Surrey Water plc but bidders should note that that this list of contracting entities which may call off supplies under this framework may change and/or increase over time in the event of further investments/acquisitions by the Pennon Group and/or any group restructuring and the list of sites may also change due to site disposals/acquisitions. Bidders are required to include details of how new sites or supply points will be included in their proposals including any need for deemed or temporary pricing for partial month supply periods. The appointment of a supplier under this framework will not entitle that supplier to exclusivity in relation to its scope, nor will it provide any guarantee as to the volume of electricity to be supplied. While this framework is expected to cover most of the electricity requirements of the regulated utilities and other subsidiary entities within the Pennon Group, there may be specific instances where other suppliers are engaged, for example but not limited to, niche or transitional services such as new site acquisition or short-term operational requirements. Please see additional documents on the Pennon Supplier Portal for further details on the scope and requirements for this procurement.