CCS could save the public sector over £2 billion with its Energy 2 agreement

Crown Commercial Service (CCS) released their new Energy 2 agreement, expected to supply up to £51 billion of electricity and gas to the public sector

This Energy 2 agreement, set to become the biggest energy contract ever awarded in the public sector, is estimated to save the central government and wider public sector organisations over £2 billion.

With improved energy pricing options tailored to suit risk factors and business needs of the central government, this agreement will help organisations overcome the current energy crisis brought on by a faltering energy market.

Additionally, the agreement aims to support net zero goals and decarbonisation of the public sector.

Energy-saving advice and carbon reporting

• Enhanced provisions for sleeving PPAs
• Clean zero-carbon energy
• Energy-saving advice
• Access educational energy webinars, bulletins, and events
• Carbon offsetting credits and allowances
• Data and portfolio management
• Support with carbon reporting

The Energy 2 agreement integrates Power Purchase Agreements (PPAs), for customers to purchase a proportion of their electricity requirements directly from a renewable electricity generator, such as a wind turbine or solar farm, rather than traditional carbon-emitting energy sources.

Giving organisations more control over rising costs

The Energy 2 agreement will allow customers to have more control over rising costs, protecting them from pricing volatility.

While this agreement allows customers to buy through in-house energy traders, the procurement process and contract drafting will be supported by specialist CCS legal advice.

Additional to providing metering services by a named account managers and a dedicated customer service team, it will also give customers enhanced protection from cyber security threats through Cyber Essentials Plus.

Full compliance with all the latest procurement policy requirements

John Malone, Deputy Director for Energy at Crown Commercial Service, said: “Our Supply of Energy 2 agreement is the culmination of extensive market engagement between CCS, our customers, and UK energy suppliers.

“By addressing key pain points such as market volatility, contract complexity, cyber vulnerability and the various challenges associated with national net zero ambitions, we are well-positioned to meet the evolving needs of our customers, now and in the future.

“Contracts that support PPAs can be notoriously complex. Our new energy supply agreement simplifies the process with a number of provisions that allow customers to integrate their PPAs directly into their supply contracts.”

The new agreement will eventually replace CCS’ existing Supply of Energy and Ancillary Services (RM6011) agreement.