Section one: Contracting entity
one.1) Name and addresses
NATIONAL ENERGY SYSTEM OPERATOR LIMITED
ADDRESS
TOWN
POSTCODE
Contact
Tennille Madigan
tennille.madigan@nationalenergyso.com
Telephone
+44 7795483583
Country
United Kingdom
Region code
UKK - South West (England)
Companies House
ocds-h6vhtk-04d52d
Internet address(es)
Main address
one.3) Communication
The procurement documents are available for unrestricted and full direct access, free of charge, at
Additional information can be obtained from the above-mentioned address
Tenders or requests to participate must be submitted electronically via
one.6) Main activity
Electricity
Section two: Object
two.1) Scope of the procurement
two.1.1) Title
Financial Audit Services
two.1.2) Main CPV code
- 79212100 - Financial auditing services
two.1.3) Type of contract
Services
two.1.4) Short description
National Energy System Operator (NESO) makes sure that Great Britain has the essential energy it needs by ensuring supply meets demand every second of every day.
The UK's 2023 Energy Act established an independent system planner and operator to help accelerate Great Britain's energy transition; creating NESO.
NESO is built on our previous experience as the National Grid Electricity System Operator (ESO), where we had extensive expertise in balancing electricity supply and demand 24/7, whilst making sure the networks we operated and the markets we served were prepared for the future.
NESO was sold by National Grid to the UK Government on 1st October 2024 , becoming a public sector organisation from this date. We require comprehensive financial audit services compliant with International Standards of Supreme Audit Institutions (ISSAI). The objective is to ensure NESO's financial, performance, and regulatory operations are conducted with transparency, accountability, and efficiency. This specification provides the framework for the required audit services, including scope, planning, reporting, accountability, and SLAs.
Scope of Services
The audit firm will be responsible for delivering the following detailed services:
Financial Audit
o Provide reasonable assurance over NESO's financial records in accordance with applicable accounting standards (IFRS ).
o Verify that financial statements are free from material misstatements due to fraud, error, or irregularities.
o Evaluate internal financial controls, focusing on risks associated with financial misreporting, operational inefficiencies, or compliance failures.
o Provide an audit opinion on the true and fair representation of NESO's financial position, performance, and cash flow.
o Conduct testing of key accounts to provide reasonable assurance over the financial assertions.
o Update NESO leadership and Audit & Risk Committee (ARC) regarding relevant changes in legislation and regulation.
o Report on external audit progress to NESO leadership, including attendance at bi-monthly ARC meetings and other board or committee meetings as required.
o Provide guidance to NESO leadership in particular the Chief Financial Officer (CFO), chair of ARC, director of financial control, and the accounting & reporting lead on accounting and financial matters.
o Liaise and coordinate with the CFO, director of financial control and accounting & reporting lead via a monthly progress meeting to ensure full exchange of information.
o Produce an annual SOC1 report evaluating the effectiveness of NESO financial controls in relation to transmission revenue charging, for external distribution to UK transmission owners, including National Grid Electricity Transmission (NGET).
two.1.5) Estimated total value
Value excluding VAT: £5,000,000
two.1.6) Information about lots
This contract is divided into lots: No
two.2) Description
two.2.3) Place of performance
NUTS codes
- UK - United Kingdom
Main site or place of performance
UK Wide - any NESO Site
two.2.4) Description of the procurement
NESO was sold by National Grid to the UK Government on 1st October 2024 , becoming a public sector organisation from this date. We require comprehensive financial audit services compliant with International Standards of Supreme Audit Institutions (ISSAI). The objective is to ensure NESO's financial, performance, and regulatory operations are conducted with transparency, accountability, and efficiency. This specification provides the framework for the required audit services, including scope, planning, reporting, accountability, and SLAs.
________________________________________
4. Scope of Services (Detailed)
The audit firm is responsible for delivering the following detailed services:
Financial Audit
o Provide reasonable assurance over NESO's financial records in accordance with applicable accounting standards (IFRS ).
o Verify that financial statements are free from material misstatements due to fraud, error, or irregularities.
o Evaluate internal financial controls, focusing on risks associated with financial misreporting, operational inefficiencies, or compliance failures.
o Provide an audit opinion on the true and fair representation of NESO's financial position, performance, and cash flow.
o Conduct testing of key accounts to provide reasonable assurance over the financial assertions.
o Update NESO leadership and Audit & Risk Committee (ARC) regarding relevant changes in legislation and regulation.
o Report on external audit progress to NESO leadership, including attendance at bi-monthly ARC meetings and other board or committee meetings as required.
o Provide guidance to NESO leadership in particular the Chief Financial Officer (CFO), chair of ARC, director of financial control, and the accounting & reporting lead on accounting and financial matters.
o Liaise and coordinate with the CFO, director of financial control and accounting & reporting lead via a monthly progress meeting to ensure full exchange of information.
o Produce an annual SOC1 report evaluating the effectiveness of NESO financial controls in relation to transmission revenue charging, for external distribution to UK transmission owners, including National Grid Electricity Transmission (NGET).
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.2.9) Information about the limits on the number of candidates to be invited
Envisaged minimum number: 5
Maximum number: 20
Objective criteria for choosing the limited number of candidates:
Supplier that responded to the PIN.
two.2.10) Information about variants
Variants will be accepted: No
two.2.11) Information about options
Options: Yes
Description of options
Extension would be within the allowable regulations only
Section three. Legal, economic, financial and technical information
three.1) Conditions for participation
three.1.2) Economic and financial standing
Selection criteria as stated in the procurement documents
three.1.3) Technical and professional ability
Selection criteria as stated in the procurement documents
Section four. Procedure
four.1) Description
four.1.1) Type of procedure
Negotiated procedure with prior call for competition
four.1.8) Information about the Government Procurement Agreement (GPA)
The procurement is covered by the Government Procurement Agreement: No
four.2) Administrative information
four.2.2) Time limit for receipt of tenders or requests to participate
Date
11 March 2025
four.2.3) Estimated date of dispatch of invitations to tender or to participate to selected candidates
1 April 2025
four.2.4) Languages in which tenders or requests to participate may be submitted
English
four.2.6) Minimum time frame during which the tenderer must maintain the tender
Duration in months: 6 (from the date stated for receipt of tender)
Section six. Complementary information
six.1) Information about recurrence
This is a recurrent procurement: No
six.2) Information about electronic workflows
Electronic ordering will be used
Electronic invoicing will be accepted
Electronic payment will be used
six.4) Procedures for review
six.4.1) Review body
OFGEM
London
Country
United Kingdom