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Collaborative and Compliant Procurement

TEC Member institutions are well versed in the requirements of Public Contracting Regulations and all that compliance with these entails. The need to ensure that supply contracts major areas of expenditure are let according to the latest UK and EU directives and rules can be a time consuming and hence expensive task.

Think next about the need to overlay these procurement rules on the regulated and complex requirements of UK energy and carbon markets, and the task becomes even more challenging.

As a legally constituted Contracting Authority, TEC provide procurement services through which fully complaint frameworks are established. Adherence to UK Public Contracting Regulations is a given and TEC’s procurement processes are regularly audited to the same standards as Member institutions and other public bodies.

Your choice of Framework – a fully supported process.

In the increasingly complex energy markets there can seem to be a bewildering choice of contract structures. TEC have a choice of frameworks from the more traditional fixed term contracts available via Further Competition on frameworks with up to 16 suppliers and single supplier fixed term arrangements for smaller, non half-hourly (NHH) metered supplies. Then there are the flexible contracts, again with carefully selected single suppliers for larger half-hourly metered electricity and NHH supplies and another for natural gas. Making a choice between these can depend on many factors, so you can trust the TEC team to explain the options and help you to make your choice. There is no right or wrong choice, but you can be sure that you will be given all the information you need to make a choice that is right for you.

Fully Managed Supplier Performance.

A key part of the evaluation and award criteria on TEC energy supply frameworks is around the customer service performance of the suppliers, and in their ability to meet our very high standards. During the period of each framework we require suppliers to report regularly on a range of Key Performance Indicators which measures their service in areas such as billing, query management and data provision. In the event these standards are seen to slip below required levels, TEC’s active Supplier Relationship Management will escalate any resolution to the highest possible levels within the supplier organisation. The energy contracts we make available to the suppliers via the frameworks are very desirable and we work to ensure that we leverage this to the benefit of our Members.

All this means that your experience of an energy supplier via a TEC framework is likely to be much better than any you may have had with them on a direct contract.

Risk Management Services for Flexible Energy Procurement.

The ability to access flexible, risk managed energy purchasing arrangements is something which has become more widely available. Indeed estimates are that up to 80% of all energy purchased in the non-domestic market is via these arrangements.

It is critical, therefore, that your engagement with the wholesale energy markets via such a contract is carefully managed and employs a strategy which reflects your appetite for risk. A balance between “best price” and budget certainty is very difficult to achieve and it is easy to chase the promise of lowest price at the expense of an unpredictable future energy bill.

TEC’s risk management service has been refined over many years and is delivered via a team with many years’ experience of flexible energy purchasing in both public and private sectors. Of course there is always the option to follow a different strategy, but the tools and benefits of buying as part of a basket of Member from Higher and Further education brings many benefits, not least the avoidance of the need to be consulted over every and any purchase or change in strategy.

Budget and Performance Reporting.

So you have chosen your method of energy contracting and want to be able to predict what your costs will be for the duration of the arrangement and perhaps even beyond. In addition you will want to know how your share of the TEC flexible portfolio is performing in comparison to target costs or benchmarks.

TEC will provide access to a range of performance reporting and budgeting tools which not only take account of the rapidly moving wholesale energy cost element of your bill, but also the increasingly unpredictable, so-called, non-commodity costs. These include regulated transmission and distribution charges, carbon taxes and other levies as well as your own varied VAT arrangements. What’s more, much of this information is available down to an individual meter level so you can use it to support investment decisions in energy saving initiatives.

Annual Benefits Reporting for Efficiency and Collaboration.

Many organisations and institutions who are “spending the public purse” are targeted to evidence the benefits of choosing collaborative arrangements, often in support of a sector agenda to demonstrate efficiencies from these arrangements. TEC provide annual statements to evidence both spend through our collaborative programmes and the summary of these are provided to Government and sector bodies to underline the value of collaboration.

These statements are a very important tool for our Members in answering the question posed by leaders within their own organisation and to challenge some of the many competitors from the private sector when they all ask “Why TEC?”