Tender

Purchase and Supply of Electricity for sites within South West Water Limited

  • SOUTH WEST WATER LIMITED

F05: Contract notice – utilities

Notice identifier: 2025/S 000-001974

Procurement identifier (OCID): ocds-h6vhtk-04d4e8

Published 21 January 2025, 9:53am



Section one: Contracting entity

one.1) Name and addresses

SOUTH WEST WATER LIMITED

Peninsula House

EXETER

EX27HR

Contact

Sam Woollacott

Email

swoollac@pennon-group.co.uk

Country

United Kingdom

Region code

UKK - South West (England)

Companies House

02366665

Internet address(es)

Main address

https://www.southwestwater.co.uk/

one.3) Communication

Access to the procurement documents is restricted. Further information can be obtained at

https://pennon.esourcingportal.com/current_opportunities.cfm

Additional information can be obtained from the above-mentioned address

Tenders or requests to participate must be submitted electronically via

https://pennon.esourcingportal.com/current_opportunities.cfm

one.6) Main activity

Water


Section two: Object

two.1) Scope of the procurement

two.1.1) Title

Purchase and Supply of Electricity for sites within South West Water Limited

two.1.2) Main CPV code

  • 09300000 - Electricity, heating, solar and nuclear energy

two.1.3) Type of contract

Supplies

two.1.4) Short description

South West Water Limited is seeking (as a centralised purchasing body on behalf of itself and other subsidiaries within the Pennon Group from time to time) to enter into a framework with a single supplier for the flexible supply and management of electricity to both regulated utilities and other subsidiary entities within the Pennon Group for a five year period from 1 April 2027 to 31 March 2032. The ability to forward purchase volumes as part of the Group hedging strategy is required in the time preceding this period.

The Pennon Group is a large consumer of energy across a portfolio of c. 2500 sites with a range of connections. The Pennon Group's sites provide drinking water and sewerage services to customers within Devon and Cornwall with additional drinking water only services to customers around Bristol, Bournemouth, Christchurch and Sutton and East Surrey.

Current annual supply volumes are c. 450 GWh and it is anticipated that this will increase over the term of the framework due to growth in treatment quality and served population and also potential investments/acquisitions. At the time of this notice, the current subsidiary entities within the Pennon Group whose sites will covered by this procurement are South West Water Limited, Sutton and East Surrey Water plc, but bidders should note that this list of contracting entities which may call off supplies under this framework may change and/or increase over time in the event of further investments/acquisitions by the Pennon Group and/or any group restructuring.

two.1.6) Information about lots

This contract is divided into lots: No

two.2) Description

two.2.2) Additional CPV code(s)

  • 31682000 - Electricity supplies

two.2.3) Place of performance

NUTS codes
  • UKI6 - Outer London – South
  • UKJ - South East (England)
  • UKK - South West (England)

two.2.4) Description of the procurement

South West Water Limited is seeking (as a centralised purchasing body on behalf of itself and other subsidiaries within the Pennon Group from time to time) to enter into a framework with a single supplier for the flexible supply and management of electricity to both regulated utilities and other subsidiary entities within the Pennon Group for a five year period from 1 April 2027 to 31 March 2032 with a unilateral break option for South West Water Limited at the end of the third year on giving 6 months' notice. This break clause will only be exercised in exceptional circumstances and if exercised, then the supplier will be expected to work with the Pennon Group to protect commodity trades already executed.

Bidders should please note that it is anticipated that the management of electricity supply will be conducted for the Group by South West Water Limited at the framework level and this will also be expressly acknowledged and authorised by the Pennon Group contracting entities when entering into call-off contracts under the framework, including authorisation for South West Water Limited to make orders on behalf of the relevant contracting entity. It is then intended that the electricity supply will be implemented through call-offs with specific Pennon Group contracting entities.

South West Water Limited is running this procurement using the Negotiated Procedure with prior call for competition under Regulation 47 of the Utilities Contracts Regulations 2016.

The Pennon Group is a large consumer of energy across a portfolio of c. 2500 sites with a range of connections from small single-phase unmetered telemetry supplies to treatment sites with complex arrangements and connection capacities of several MVA. The Pennon Group's sites provide drinking water and sewerage services to customers within Devon and Cornwall with additional drinking water only services to customers around Bristol, Bournemouth, Christchurch and Sutton and East Surrey. For reference, please see coverage map in the "Supplier Instructions" document for this procurement on the Pennon Supplier Portal.

Current annual supply volumes are c. 450 GWh and it is anticipated that this will increase over the term of the framework due to growth in treatment quality and served population and also potential investments/acquisitions. At the time of this notice, the current subsidiary entities within the Pennon Group whose sites will covered by this procurement are South West Water Limited and , Sutton and East Surrey Water plc but bidders should note that that this list of contracting entities which may call off supplies under this framework may change and/or increase over time in the event of further investments/acquisitions by the Pennon Group and/or any group restructuring and the list of sites may also change due to site disposals/acquisitions. Bidders are required to include details of how new sites or supply points will be included in their proposals including any need for deemed or temporary pricing for partial month supply periods.

The appointment of a supplier under this framework will not entitle that supplier to exclusivity in relation to its scope, nor will it provide any guarantee as to the volume of electricity to be supplied. While this framework is expected to cover most of the electricity requirements of the regulated utilities and other subsidiary entities within the Pennon Group, there may be specific instances where other suppliers are engaged, for example but not limited to, niche or transitional services such as new site acquisition or short-term operational requirements.

Please see additional documents on the Pennon Supplier Portal for further details on the scope and requirements for this procurement.

two.2.5) Award criteria

Price is not the only award criterion and all criteria are stated only in the procurement documents

two.2.7) Duration of the contract, framework agreement or dynamic purchasing system

Duration in months

60

This contract is subject to renewal

No

two.2.10) Information about variants

Variants will be accepted: No

two.2.11) Information about options

Options: No


Section four. Procedure

four.1) Description

four.1.1) Type of procedure

Negotiated procedure with prior call for competition

four.1.3) Information about a framework agreement or a dynamic purchasing system

The procurement involves the establishment of a framework agreement

Framework agreement with a single operator

four.1.8) Information about the Government Procurement Agreement (GPA)

The procurement is covered by the Government Procurement Agreement: Yes

four.2) Administrative information

four.2.2) Time limit for receipt of tenders or requests to participate

Date

4 February 2025

Local time

10:00am

four.2.4) Languages in which tenders or requests to participate may be submitted

English


Section six. Complementary information

six.1) Information about recurrence

This is a recurrent procurement: No

six.3) Additional information

This procurement is being conducted under regulation 47 of the Utilities Contracts Regulations 2016, utilising the Negotiated Procedure with prior call for competition and will only be available through the Pennon Supplier Portal.

Interested parties should note that this procurement may not result in the award of any contract, and issue of this Contract Notice does not create any form of contract, implied or otherwise, between South West Water Limited and any other party, and that participation in procurement process is entirely at potential suppliers' own risk.

six.4) Procedures for review

six.4.1) Review body

High Court of England and Wales

London

EC4A 1NL

Country

United Kingdom