Presentation to Academies and Schools
Gas supplies 2017-2021
Calderdale’s schools and academies
Who (or what) is YPO
YPO is the largest formally constituted Public
Sector Buying Organisation in the UK.
Annual turnover in
excess of £660 Million
Owned by the Public Sector
as a not-for-profit organisation
Buying power! We combine the purchasing
requirements of thousands of public sector customers.
Frameworks compliant with
public procurement regulations
Yorkshire by name, but we work nationally
with customers up and down the country
Customer base includes over 100 local authorities, academies, colleges,
universities, leisure trusts, Police, Fire and Rescue, public-sector housing, etc
20 June 2016
2
YPO Gas Framework
Pre-selected supplier based on stringent
competitive tendering process
Purchasing 1.9bn kWh of gas
Serving over 8,000 gas supplies
Supplying gas contracts to the
public sector for over 25 years
20 June 2016
Corona Energy
Equates to a contract value of approximately
£250million over the 4 years of the framework
Dedicated energy procurement team with
market knowledge and expertise
Support services to schools including
energy bureau, bill validation, & web tools
3
Fixed Price or Flexible Purchasing?
Flexible Purchasing
Fixed Price
Short-term strategy
Long-term strategy
All energy bought at the same point
for a fixed period of time
Rides out volatility in energy markets
Boom or bust!
Never fix your costs at market peaks
Short term success in a falling market
Combine spending power to access
wholesale market rates
At the mercy of the market at contract
renewal time
Utilises our team of dedicated energy
buyers and their market expertise
Higher risk premiums
Energy bought in advance so easier
to budget for coming years
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4
Factors affecting gas prices
Economic Issues
• USA v OPEC Oil price war
• EU Referendum
• £ v $ v €Exchange Rate
UK Specific Issues
• Uptake of renewable energy
• Import of Gas
• Non-commodity costs –
Transmission and operation costs,
CCL, etc.
• Storage Levels
• Weather Conditions
20 June 2016
Geo-political Tensions
• Russia / Ukraine conflict
• Civil war in Libya
• Historic Iran/Iraq issues
5
Flexible Purchasing
Multiple
purchases spread
the risk
Delivered
commodity price
£
A
20 June 2016
M
J
J
A
S
O
6
N
D
J
F
M
Fixed Price
All kWh for the
Year bought
£
A
20 June 2016
M
J
J
A
S
O
7
N
D
J
F
M
Accessing the YPO Gas Framework – your options
Through the Calderdale MBC energy team
Direct through YPO
Through your Multi-Academy Trust
20 June 2016
8
Contacts
Richard Hudson
Adam Throup
Procurement Manager Energy
Category Manager Energy Trading Operations
[email protected]
[email protected]
01924 885937
01924 885932
07713 392060
07540 673630
Rob Clark
Georgina Penfold
Category Business Partner Energy
Category Manager Energy Solutions
[email protected]
[email protected]
01924 821787
01924 885932
07814 290586
07580 698044
Fergus Parish
Steve Sefton
Energy Buyer
Energy Buyer
[email protected]
[email protected]
01924 821745
01924 884867
20 June 2016
9
Presentation to Academies and Schools
Thank you!
Your questions?