Government funding cuts have seen many public sector energy posts removed or merged and some public sector organisations are having to rethink their approach to procurement. Total Gas & Power’s Sally-ann Kempin believes a professional buying organisation (PBO) may provide the solution.
Total Gas & Power is currently the supplier on six awarded framework agreements, four gas and two power, which have been awarded by four PBOs, and cover approximately 60,000 public sector sites for local authorities, NHS trusts, schools, colleges and universities, emergency services and housing associations.
The company recommends that public sector customers join framework agreements run by the recognised PBOs as they have the following benefits:
OJEU compliant – No further requirement to tender as these have been through a full OJEU compliant process, creating efficiency and cost savings to customers
Awarded and managed by contracting authorities – Framework agreements are set in place by contracting authorities, who act as the central purchasing body (PBOs)
Transparency – Full visibility of all fees, as there is a not-for-profit commission structure from all PBOs
Terms and conditions pre-agreed – These are set in place prior to a framework agreement being awarded, providing a high degree of contractual security for all parties
Aggregated trading – Buyer power is created through aggregating supply volume, thus allowing for significant volumes to be traded on the wholesale market
Reduced supplier fees – Aggregation of supply/volume helps to reduce customer cost to serve
Dedicated points of contact – Bespoke and dedicated customer service and contract management teams are in place for the contracts
Contract development – Development clauses within framework agreements to improve customer experience and product options
Access to PBO specialist energy and procurement support
Managed risk strategies – PBOs develop risk strategies/products to suit the needs of their customers, which are reviewed by their governance panel members, which usually consist of representation from individual subsectors of the public sector
Access to added value services – Framework agreements allow access to additional goods and services
Key Performance Indicators (KPIs) – It is usual for larger framework agreements to be managed/monitored by pre-agreed KPIs
Join at any time – You can join at any point, and you do not need to sign up prior to the tendering exercise
Total Gas & Power has decades of public sector energy procurement expertise within its dedicated team. Speak to them here.