News
TEC Members reap the benefits of being part of the TEC Framework
Our full TEC Membership Annual Benefits Statement demonstrates the strength of group buying
For the third year running we are delighted to share that our Member’s continue to gain benefit from a double digit return on fees spent within the TEC Framework, showing the strength of group buying with considerable savings achieved across the membership.
In 2023/24 the TEC Membership averaged a saving of £11.10 on every £1 spent on fees within the Framework for gas and electricity utilities and increased savings, in excess of £847,000, from the Water Framework rate vs Default Wholesale charges.
Each year TEC provide data to quantify and demonstrate the benefits of using our Frameworks. In Higher Education this is a key part of reporting under the Procurement Value Survey (PVS). We capture and report contract spend and consumption through the frameworks for each Member’s fiscal year.
Looking across the membership the key highlights from our 2023/24 Benefits Statement are:
- Return on investment – savings per £1 spent within TEC – stood at £11.10.
- Electricity and gas savings through being part of an aggregated flexible basket doubled from the previous year, reaching £6,362,123
- Water savings vs default were an impressive £847,159
- Total cost avoided by being part of the TEC framework remained steady at £6,827,611.
- Fully fixed versus flexible contract savings amounted to £18,415,281.
- Significant savings achieved through group buying, specifically the Volume Related Discount. These savings are only possible through large consortia arrangements such as the TEC framework.
- Energy spend was up from 2022/23 to £679,532,888, reflecting our increased membership with nine new members joining throughout the year.
- Energy consumption also increased in line with our portfolio growth to 4,006,985,529kWh.
- Transparency in our charges to each Member and the whole membership. This includes Risk Management Services charge, Orbit Portal access and TEC Member & Bureau services to the membership.
- Demonstrating the support from our Bureau and MSA teams in how many invoices (185,276) and queries (932) were processed across the membership this year, saving each member time and money.
Gemma Black, TEC’s Head of Operations, said:
“It has been another excellent year showcasing the clear advantages of being a TEC Member. One of the standout highlights was the benefit of group buying through Volume Related Discounts. While the year-on-year savings have decreased in 2023/24, this is largely due to the easing of energy market pressures as we emerged from the Energy Crisis in 2022 and the decline in costs to fix non-commodity electricity charges. Nevertheless, we are pleased that these savings remain above the long-term average, especially as our Members continue to face growing financial pressures and the challenge of achieving more with less.”
