Scope
Description
The procurement proposes appointing Wattserve Itchen Limited ("Supplier") to provide electricity to Portsmouth Water Limited ("PW"), integrating both new renewable generation and existing solar assets on PW's premises at River Itchen Water Treatment Works (the "PW Premises"). The Supplier will install, operate and own new solar PV and battery storage assets to supplement the electricity supplied to PW from the existing solar assets.
Brockhampton Solutions Limited ("BSL") currently owns existing solar assets on PW's Premises and supplies electricity to PW under a power purchase agreement. In order to ensure the new arrangements align with BSL's existing supply arrangement, PW and the Supplier will coordinate with BSL to continue the supply of electricity from BSL's existing assets to PW under the existing power purchase agreement. The Supplier will supplement any shortfall of electricity needed by PW on the PW Premises.
PW, as the occupier of the PW Premises, will consume the electricity supplied under this integrated arrangement and provide access for the installation and operation of the Supplier's assets. The combined approach ensures PW's electricity needs are met through a mix of the Supplier's new generation, BSL's existing solar assets, and grid supply where required.
This arrangement establishes the roles and interactions between PW, BSL, and the Supplier, supporting an efficient, coordinated electricity supply while maintaining continuity with existing solar infrastructure.
Contract 1
Supplier
Contract value
- £8,700,000 including VAT
Above the relevant threshold
Earliest date the contract will be signed
18 December 2025
Contract dates (estimated)
- 19 December 2025 to 1 April 2051
- 25 years, 3 months, 14 days
Main procurement category
Goods
CPV classifications
- 09310000 - Electricity
- 09330000 - Solar energy
- 31680000 - Electrical supplies and accessories
- 44112430 - Roof trusses
Contract locations
- UKJ35 - South Hampshire
Participation
Particular suitability
Small and medium-sized enterprises (SME)
Other information
Description of risks to contract performance
Financial distress of the Supplier: There is a risk that the Supplier may enter financial distress or insolvency during the term of the contract. The contract mitigates this by allowing PW to terminate the contract and either (1) pay an agreed discounted termination amount and take ownership of the new assets; or (2) require the Supplier to remove the new assets. These provisions protect PW from the risk of orphaned assets, but financial distress remains a residual risk to the satisfactory performance of the contract.
Regulatory change: Future amendments to electricity regulations could affect the economics of the contract. The contract includes a change mechanism to ensure continued compliance with laws, whilst maintaining the original commercial positions of the parties. While this change mechanism provides flexibility, regulatory change remains a residual risk to the satisfactory performance of the contract.
Conflicts assessment prepared/revised
Yes
Procedure
Procedure type
Direct award
Special regime
Utilities
Direct award justification
- Single supplier - intellectual property or exclusive rights
- Single supplier - technical reasons
The procurement is proposed to be awarded to the Wattserve Itchen Limited under the exemption for a public contract awarded without competition for technical reasons (Schedule 5, Paragraph 6), on the basis that: 1. The relevant premises already host an operational solar supply owned by Brockhampton Solutions Limited ("BSL") under an existing power purchase agreement with Portsmouth Water ("PW"). A key feature of the proposed arrangement is that BSL will continue to operate its existing solar assets on the relevant premises and supply electricity to PW under the terms of the existing power purchase agreement. The Supplier will only supplement any shortfall in electricity needed by PW on the premises using the new generation assets and/or grid supply. The Supplier will manage the export and import meters on PW's supply circuit and act as BSL's agent in exporting any surplus electricity generated by BSL's existing assets. Any behind-the-meter solution must be integrated with BSL's existing assets and contractual arrangements and PW's supply circuit. PW is therefore technically constrained to work within the framework established by BSL, making this integration a defining feature of the proposal. 2. PW has explored alternative solutions in the market. However, any solution must be compatible with BSL's existing contractual and operational requirements. As a result, while other solutions may exist in principle, they are not reasonable alternatives for the purposes of Schedule 5, Paragraph 6, because PW is bound by BSL's mandates regarding the transaction. The distinction between "substitutes" (other potential solutions) and "reasonable alternatives" (feasible options that meet PW's technical and contractual constraints) supports this conclusion. In addition Wattstor Itchen Limited have also incorporated into the solution certain exclusive intellectual property and commercial terms that are not otherwise available on the open market.
Supplier
WATTSERVE ITCHEN LIMITED
- Companies House: 16674450
- Public Procurement Organisation Number: PPPC-7299-YGHD
21 Ironmonger Lane
London
EC2V 8EY
United Kingdom
Email: kevin@wattstor.com
Region: UKI31 - Camden and City of London
Small or medium-sized enterprise (SME): Yes
Voluntary, community or social enterprise (VCSE): No
Contract 1
Contracting authority
PORTSMOUTH WATER LIMITED
- Companies House: 02536455
- Public Procurement Organisation Number: PTQG-7125-BLXM
Brockhampton Springs
Havant
PO9 1LG
United Kingdom
Telephone: +44 2392499888
Email: mike.rumboll@portsmouthwater.co.uk
Website: http://www.portsmouthwater.co.uk
Region: UKJ35 - South Hampshire
Organisation type: Private utility
Other organisation
These organisations are carrying out the procurement, or part of it, on behalf of the contracting authorities.
BROCKHAMPTON SOLUTIONS LIMITED
Summary of their role in this procurement: Existing supplier of electricity and owns existing solar assets on the relevant premises.
- Companies House: 13281583
- Public Procurement Organisation Number: PTRR-2719-VHHY
Brockhampton Springs
Havant
PO9 1LG
United Kingdom
Region: UKJ35 - South Hampshire