Procurement - natural gas: framework agreement

Overview

National framework agreement for the supply of natural gas for the Scottish public sector.

What is in scope

The national contract covers the supply of natural gas only and is available to the following Scottish public bodies, organisations and institutions.

Who can use this

The framework can be used by:

• central government
• health
• local authorities
• universities and colleges
• third sector
• other public bodies

Note: It is the responsibility of any buying organisation wishing to use the framework agreement to satisfy itself that it is eligible to do so.

Entitlement can be established from the terms of the OJEU advert and guidance on this can be found in Annex A of Scottish Government Guidance on Framework Agreements. If there is any doubt, legal advice should be sought.

Benefits

The benefits of this contract are:

• estimated savings of £7.9 million per annum
• improved customer service
• web portal upgrade

Sustainability benefits include:

• option to purchase Renewable Gas Guarantee of Origin (RGGO) certificates, based on market liquidity and best market prices
• a range of energy efficiency services available as additional services
• provision of additional technical support and guidance around Natural Gas

Community and socio-economic benefits include:

• an apprenticeship training programme, with an apprentice providing direct support to the framework
• sub-contract metering services to Scottish SMEs to promote opportunities to source local metering engineers and local subcontractors to benefit local communities
• providing framework customers with upskilling opportunities through customer workshops, industry training and educational material.
• actively promoting the Better Energy School Awards, in partnership with Total Exploration and Production
• advertisement any sub-contact opportunities on Public Contracts Scotland website

Fair Work Matters:

• pay above the Living Wage and progressing formal accreditation
• do not operate Zero Hours contracts
• currently meet or working towards Scottish Government’s Scottish Business Pledge

Supplier

TotalEnergies Gas and Power Ltd

Further information

The national frameworks for the Supply of Electricity and Supply of Natural Gas wholesale volumes are bought up to  2½ years in advance in tranches, following a proven ‘hedging’ purchasing strategy overseen by a cross-sectoral Risk Management Committee. The Committee comprises senior managers representing procurement, finance and energy management interests.

Whilst energy prices have risen to unprecedented levels because of global influences, the Scottish Government purchasing strategy has mitigated some of the increases for customers on the frameworks. However, given the substantially increased price risk that this market volatility has brought, the Risk Management Committee has temporarily suspended the on-boarding of all new customers with immediate effect in order protect the organisations currently using the frameworks from increased costs. Organisations that are currently customers (including some third sector bodies) will remain on the framework.   

The Risk Management Committee is currently reviewing a range of options to accommodate public and third sector bodies who do not currently use our energy frameworks.

In the meantime, Charities and other third sector organisations will be afforded some protection from rising bills via the Department for Business, Energy and Industrial Strategy, Energy Bill Relief Scheme and the follow on new scheme announced on the 9 January 2023 the Energy Bills Discount Scheme which will run from 1 April 2023 until 31 March 2024.

Public bodies wishing to access the national gas contract must provide a signed agency agreement to Scottish Procurement.

This document delegates authority to Scottish Procurement to purchase gas in the wholesale gas market and also includes the option to sign up to the national electricity contract.

The agency agreement is included as annex A within the buyer’s guide and is an attachment to this page.

As part of the agreement, public bodies must also provide site data information in the required format, which is set out in the attached site addition form which will be available shortly.

Framework documents, including the associated Supply Agreement and TGP Welcome Pack, can be found on the Knowledge Hub.

If you are not registered to access this site and are eligible to use the framework please complete the attached template and send to procurementutilities@gov.scot.

Further information

The buyer's guide is available for more information.