Scottish Procurement Framework Agreement for the Supply of Natural Gas

Description

The Scottish Ministers through the Collaborative and Scottish Government Procurement Division are seeking to establish a single operator framework for the Supply of Natural Gas and Associated Services to the Scottish Public Sector. The duration of the framework agreement will be for three years with options to extend for three further twelve month periods. Please refer to section VI.3)Additional Information for eligible public bodies. Lot 1: The framework agreement is for the supply of Natural Gas. The anticipated total consumption, based on the current Scottish Procurement framework agreement volumes, is 4.3 billion kWh per annum. Scottish Procurement will operate a flexible purchasing strategy for public sector and third sector bodies under the Framework Agreement, predominantly sourced via the traded Natural Gas markets employing buys and sells on a forward and prompt basis via the Contractor's trading desk, with forward purchasing anticipated at 30 months. The Contractor must be able to incorporate volumes sourced independently into the volumes of natural gas that are required to supply any designated framework users. Framework users will take delivery of natural gas on the basis of annual supply periods. Framework users may require certain ancillary services. The Framework documentation incorporates a number of requirements relevant to and included so as to promote the potential for furthering environmental, renewable and robust energy supply initiatives. The measures it contains include that the supplier must be able to incorporate natural gas volumes sourced independently, with a view to incorporating, within the supply portfolio, sources consistent with the objectives of the Authority and the relevant Framework users (for example related to furthering duties on the framework users to further their sustainable procurement duty or duties under the Climate Change (Scotland) Act 2009), and to future-proof the agreement for policies proposed in the Scottish Government Draft Scottish Energy Strategy. The period of the Framework Agreement shall be from 1.4.2024 to 31.3.2027 with options to extend for up to 3 years to 31.3.2030 in single year extensions. Within these time periods, the Contractor will be expected to provide flexible purchasing trading services for the period 1.4.2024 to 31.3.2025, with the existing provider continuing to supply natural gas under the existing framework during this period. For the avoidance of doubt the Contractor will not supply natural gas to public bodies and third sector bodies under the Framework Agreement during the period 1.4.2024 to 31.3.2025. The supply of natural gas to sites will commence on 1.4.2025. For the remaining duration of the framework agreement the Contractor will provide flexible purchasing trading services and supply of natural gas to public sector and third sector bodies.