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North East Lincolnshire Council

About our Customer:

  • The North East Lincolnshire Borough Council’s regeneration partner, ENGIE, has an agreement as part of its existing partnership to provide energy management services. As a result, ENGIE were asked by the Council to procure national frameworks for electricity and gas supplies. For these frameworks ENGIE has engaged Ecova Limited as the Framework Manager, who will manage the electricity & gas framework on behalf of the Authority and other prospective Contracting Bodies.
  • Ecova is a subsidiary of the ENGIE group, and act as an independent entity providing energy procurement and bureau services. As a business, they have a requirement to remain supplier agnostic and provide advice on the best products for their clients, by utilising this advice the clients will make all final decisions. Ecova has clearly defined boundaries preventing inappropriate information sharing with ENGIE that protects both Ecova and ENGIE, as well as maintaining assurance of independence for energy suppliers and clients.

Framework Agreements

  • The contractual arrangements for the Framework Agreement are as follows:
  • The overarching Framework Agreement will be with the winning Tenderer (the Supplier) and the Authority.
  • The Customer Access Agreement will be between the Contracted Costumers and the
  • The Customer Contract will be between the Supplier and the Contracted Customer.

Winter & Summer Purchasing Performance Summary

In 2015 NELC wanted to drive savings and sustainability through a OJEU compliant private partnership that could deliver strong performance whilst minimising risk. One year later, the electricity purchasing strategy has delivered the framework with a cost avoidance of around £150k.

Earlier this year over 200 councils expressed an interest in joining the partnership to access savings by working together to buy better.

SUMMER 2016
  • Position left open in view of strong LNG imports and falling crude prices in line with strategy agreed with client
  • Markets monitored using careful analysis of global commodity stocks and technical indicators
  • Exposure covered in March 2017, only 3.5% above market lows
WINTER 2016 / 2017
  • Volatility substantially higher and direction was uncertain
  • OPEC cuts, storage concerns, Brexit,and a nuclear crisis in France all combined to drive prices higher
  • Despite these events we managed to implement the partnerships RMS and protect and deliver UK wholesale prices under the client budget
  • Even within an unprecedented price range, we still achieved around the historical average

NELC Savings Achieved

Electricity trades vs average market (Apr 2016-Mar 2017)

NELC cash savings vs electricity budget (Apr 2016-Mar 2017)

Since Apr 2017, Ecova has also managed the purchasing of natural gas for the NELC framework. This process is still in its infancy and is tracking the market average, as seen below.

Additionally, Ecova manages the electricity purchasing for many other public sector entities.  The performance of these is shown below, and demonstrates the depth of our capability:

Joining The Framework

Interested authorities can join our frameworks at any time. Even when your current contract end dates don’t align to our framework start dates, we offer the option of an “interim contract” with either NPower or Corona to bridge the gap between your contract end date and the next available framework trading period. These contracts are priced against prevailing market conditions and offer competitive pricing, together with the assurance that your supplies are being managed in line with NELC framework terms and conditions.

RESULTS FOCUSED

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