South West Water is seeking 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 water company is acting as a centralised purchasing body on behalf of itself and other subsidiaries within the Pennon Group from time to time.
The framework will incorporate a unilateral break clause for South West Water at the end of the third year on giving 6 months' notice which will only be exercised in exceptional circumstances.
If the option is exercised, the supplier would be expected to work with the Pennon Group to protect commodity trades already executed.
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.
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. The list of sites may also change due to site disposals/acquisitions.
The current subsidiary entities within the Group whose sites will covered by the procurement are South West Water Limited, Sutton and East Surrey Water plc.
However, potential bidders are being advised to note that the list of contracting entities which can call off supplies under the framework may change and/or increase over time in the event of further investments/acquisitions by the Pennon Group and/or any group restructuring.
The Group's sites currently 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.
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 framework is expected to cover most of the electricity requirements of the regulated utilities and other subsidiary entities within the Pennon Group. However, a supplier appointed under the framework will not be entitled to exclusivity in relation to its scope, nor any guarantee as to the volume of electricity to be supplied.
Time limit for receipt of tenders or requests to participate is 4 February 2025 – click here to access tender notice details.
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