Heat Supply Agreement relating to South East London Combined Heat and Power District Heating Network
Details
- Supplier(s)
- VEOLIA ES SOUTHWARK LIMITED
- Value
- £267,900,000
- Topic
- District heating
- Published
- 15 January 2026
- Source
- uk:find_a_tender
Tender description
Southwark Council (Council) and Veolia ES Southwark Limited (Veolia) entered into a PFI Project Agreement (Project Agreement) on 11 February 2008 for integrated waste management services for an initial term of [25] years . The procurement of the Project Agreement was conducted under the Public Services Contracts Regulations 1993 with a total value of 665,000,000.00 GBP. In 2013, the Council entered into a separate heat supply agreement (HSA1) with Veolia for heat supply services by means of a district heating network (Heat Network) to take waste heat from South East London Combined Heat and Power (SELCHP) to certain Council premises. The services in HSA1 were not included in the Project Agreement. HSA1 was entered into pursuant to the exemption set out in Regulation 14(1)(d)(i) of the (now repealed) Public Contracts Regulations 2006. This exemption allowed the Council to directly procure Veolia for the provision of heat supply services not included in the Project Agreement, which had subsequently become necessary due to unforeseen reasons. The HSA1 was entered into on 14 June 2013 and a related contract award notice was published on 3rd August 2013 (OJEU Reference Number: 2013/S 150-261592 ). The original term of the HSA1 as awarded was coterminous with the Project Agreement (i.e. expiring on 10 February 2033 . HSA1 is due to expire on 10 February 2033. The Council is now proposing to make the following modifications to the HSA1 via a Deed of Variation: 1) an extension to the geographical coverage and extent of the Heat Network so that it [includes/covers [insert details]some areas within the wards of Old Kent Road, Nunhead & Queen's Road, Peckham, Rye Lane and St Giles (Geographical Coverage Modification); and 2) an extension to the duration of the contract so that instead of expiring on 10 February 2033 it will expire on 31 March 2050 (Duration Modification). Further information regarding the Geographical Coverage Modification can be found in a map (Figure 1 on page 5) within the Council's published governance document to be found on the Council's website here: https://moderngov.southwark.gov.uk/documents/s130163/Report GW3 SELCHP Heat NetworkPhase2Extension.pdf The Council considers that it is entitled to rely upon Regulation 88(1)(b) of the Utilities Contracts Regulations 2016 (UCR) to modify the HSA1 to incorporate the Geographical Coverage Modification and Duration Modification without requiring a new procurement procedure for the reasons set out in Annex D2. The Council will not enter into the Deed of Variation until the expiry of at least 30 days from the publication of this notice. Lot 1: District Heating extension of SELCHP facility as set out in this notice. Southwark Council (Council) and Veolia ES Southwark Limited (Veolia) entered into a PFI Project Agreement (Project Agreement) on 11 February 2008 for integrated waste management services for an initial term of [25] years . The procurement of the Project Agreement was conducted under the Public Services Contracts Regulations 1993 with a total value of 665,000,000.00 GBP. In 2013, the Council entered into a separate heat supply agreement (HSA1) with Veolia for heat supply services by means of a district heating network (Heat Network) to take waste heat from South East London Combined Heat and Power (SELCHP) to certain Council premises. The services in HSA1 were not included in the Project Agreement. HSA1 was entered into pursuant to the exemption set out in Regulation 14(1)(d)(i) of the (now repealed) Public Contracts Regulations 2006. This exemption allowed the Council to directly procure Veolia for the provision of heat supply services not included in the Project Agreement, which had subsequently become necessary due to unforeseen reasons. The HSA1 was entered into on 14 June 2013 and a related contract award notice was published on 3rd August 2013 (OJEU Reference Number: 2013/S 150-261592 ). The original term of the HSA1 as awarded was coterminous with the Project Agreement (i.e. expiring on 10 February 2033 . HSA1 is due to expire on 10 February 2033. The Council is now proposing to make the following modifications to the HSA1 via a Deed of Variation: 1) an extension to the geographical coverage and extent of the Heat Network so that it [includes/covers [insert details]some areas within the wards of Old Kent Road, Nunhead & Queen's Road, Peckham, Rye Lane and St Giles (Geographical Coverage Modification); and 2) an extension to the duration of the contract so that instead of expiring on 10 February 2033 it will expire on 31 March 2050 (Duration Modification).
Timeline
- Completed: Award date13 June 2013
- Completed: Award published15 January 2026Current notice
About the buyer
London Borough of Southwark is a local authority in south London, and buys as a local government organisation with its contracts advertised through its own eProcurement portal. Suppliers register free on the portal to view and respond to live opportunities. Contract opportunities are also published on the London Portal, a shared system used by 22 further London boroughs. The council also procures through framework agreements for repeat requirements. Contractors seeking most construction work join an approved list before they can bid. The council keeps a public contract register to meet local government transparency requirements.
UK local government drives £140bn in annual procurement, led by social protection (£66.6bn) and education (£57.1bn).
Over the past 5 years, most of London Borough of Southwark's contract awards have been in health and social work, repair and maintenance and software and information systems.
Relevant CPV codes
- 09323000 · District heating
- 45231100 · General construction work for pipelines
- 45232142 · Heat-transfer station construction work
- 45259000 · Repair and maintenance of plant
- 50410000 · Repair and maintenance services of measuring, testing and checking apparatus
- 71200000 · Architectural and related services
- 71314000 · Energy and related services
- 71315100 · Building-fabric consultancy services
- 71315200 · Building consultancy services
- 71315210 · Building services consultancy services
- 71315300 · Building surveying services
- 71315400 · Building-inspection services
- 71420000 · Landscape architectural services
- 71510000 · Site-investigation services
- 71540000 · Construction management services
- 73220000 · Development consultancy services
Decision makers
Connect with the people behind this procurement.
| Contact name | Job title | Phone number | Work email |
|---|---|---|---|
| Head of Procurement | +44 •••• •••••• | ••••••••@london-borough-of-southwark.gov | |
| Commercial Director | +44 •••• •••••• | ••••••••@london-borough-of-southwark.gov | |
| Procurement Manager | +44 •••• •••••• | ••••••••@london-borough-of-southwark.gov | |
| Category Lead | +44 •••• •••••• | ••••••••@london-borough-of-southwark.gov | |
| Senior Buyer | +44 •••• •••••• | ••••••••@london-borough-of-southwark.gov | |
| Contracts Manager | +44 •••• •••••• | ••••••••@london-borough-of-southwark.gov |
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