Energy for Londoners Energy Supply Company

The Mayor's ambition is for London to be zero carbon by 2050. The Mayor also wants the energy market to work better for Londoners, delivering fairer prices, helping them reduce their energy use and make the best use of smart innovations. The GLA procurement is open to innovative ideas that will deliver its desired outcomes and wants to establish a genuine collaboration with a company or consortium to achieve them.

The Contracting Authorities seek to procure a fully licensed energy supplier to offer the supply of gas and electricity to all of London's residents using branding set up by the GLA under the Mayor of London's Energy for Londoners programme; and to undertake Voids Services for London Boroughs (LBs) and Housing Associations (HAs).

The key eight objectives are:

1. Competitively priced electricity and gas tariffs
2. Customer service and branding: Exemplary customer satisfaction
3. Innovation: Innovating to help Londoners and especially those in fuel poverty to better meet their energy needs and budget for them.
4. Integration with other energy programmes
5. Data access: Provide access to all EfLSCo customer consumption data, for the GLA, LBs, contractors and research partners.
6. Financial: Generate a commission, without affecting the competitive viability of tariff structures.
7. Support the possible future transition to a fully licensed supplier or to another Service Provider.
8. Void Services: Support handling vacant properties, including installation of smart meters during void periods.

The Contracting Authorities are setting up a four (4) year Framework Agreement. The EfLSCo scheme will be delivered via a Call-Off from the Framework Agreement based on a four-year term, with the option for an extension or extensions of up to four more years. The LBs and HAs detailed may enter into Call-Off Contracts under the Framework Agreement for Voids Services.

The procurement will follow the Competitive Dialogue procedure (under PCR 2015) to allow for the agreement scope and commercial arrangements to be developed and negotiated during the process, using an outcome based specification. During this process, comments will be invited on draft framework and call-off contracts at Initial Tender. Upon issue with the Final Tender, Framework and call-off contracts final terms must be accepted.

Securing and management of the EfLSCo customers will be handled by the Service Provider, and all interactions will be performed by the Service Provider's staff. The estimated turnover that the Service Provider would be able to generate across the four-year term is of the order of £279 million, including Voids Services. If the GLA choose to extend the call-off arrangement for a further four years an additional £713 million estimated turnover may be realised. All numbers are estimates and are not guaranteed by GLA and assumptions associated with customers acquired are set out in the procurement documents.

Additional information:

Bidders will need to a supply licenses under the Electricity Act 1989 and Gas Act 1986 for the supply of electricity and gas respectively and have completed Controlled Market Entry before from the project Launch Date.