Dwr Cymru Welsh Water has gone out to tender with a contract for the supply of electricity and metering services which could run for up to ten years with a potential value of £450 million.
Outlining the tender requirements, Welsh Water said that while it is an intensive energy user of electricity, further investment in on-site generation is expected to progressively reduce the proportion of imported electricity.
However, for the foreseeable future the water company will have an ongoing requirement to import/purchase electricity. Welsh Water uses 450 GWh of electricity per annum of which 400 GWh is imported electricity with the balance satisfied by on-site generation.
The current supply agreement with nPower for imported electricity expires on 31st March 2017. It is envisaged, the new agreement will be awarded a minimum of 6 months ahead of the start date, to ensure appropriate contract management and planning. There will also be a requirement to sleeve a forward hedged position to the new agreement.
DCC has an extensive portfolio of metered sites (4 000 MPAN's) of which 466 are currently metered Half Hourly (HH) and the remainder are Non-Half Hourly (NHH).
The new agreement is expected to start on 1st April 2017 and last for up to an initial 5 years. A further 5 year extension will be offered, in the form of either 2 + 2 + 1 or in single 5 year term. Anticipated agreement value per annum is put at approximately £40 million to £45 million.
Time limit for receipt of requests for documents or for accessing documents is 18th December 2015. Click here to access the tender documentation.
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