Scottish Government to Buy Electricity in Bulk
18/08/2008
The Scottish Government plans to bulk-buy electricity for the whole public sector. At present there are hundreds of individual public sector contracts in Scotland costing £200 million a year.
The Government estimates it will save £15 million over three years with the new centrally negotiated contract which is to be put out to tender shortly and awarded within the next few months.
The electricity will be used to supply schools, councils, health boards, emergency services and universities as well as Government agencies and quangos.
Bulk-buying electricity will enable the government to negotiate a lower price and reduce management fees, saving more than £15m over three years from October 2009, when the initial supply period is to begin.
It is likely a similar measure will be put in place to cut the cost of gas for the public sector. National procurement plans have also been drawn up for telecoms, computers and office equipment.
The new central procurement strategy follows continued increases in the cost of energy. Electricity bills have increased by as much as 17% in recent months.
The Government estimates it will save £15 million over three years with the new centrally negotiated contract which is to be put out to tender shortly and awarded within the next few months.
The electricity will be used to supply schools, councils, health boards, emergency services and universities as well as Government agencies and quangos.
Bulk-buying electricity will enable the government to negotiate a lower price and reduce management fees, saving more than £15m over three years from October 2009, when the initial supply period is to begin.
It is likely a similar measure will be put in place to cut the cost of gas for the public sector. National procurement plans have also been drawn up for telecoms, computers and office equipment.
The new central procurement strategy follows continued increases in the cost of energy. Electricity bills have increased by as much as 17% in recent months.
