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How does the Barbican Estate buy its energy?
The City of London has arrangements in place with LASER ENERGY /TGP until September 2025 to purchase electricity and gas in advance using a flexible approach to obtain the best possible outcome. Procurement is via a Framework Agreement established by LASER Energy (which is part of the Commercial Services Energy Division, a company wholly owned by Kent County Council).
A procurement Framework Agreement is an agreement put in place with a provider or range of providers that enables buyers to place orders for services. Framework Agreements are used by individual buyers to combine requirements and source services at lower prices, or with special added benefits and/or more advantageous conditions.
LASER Energy has undertaken an open tendering competition to establish a shortlist of best value electricity and gas suppliers. TGP is the supplier selected to provide electricity and gas supplies.
The City, and LASER Energy, closely monitor the utilities markets and sets caps to ensure that purchases are made within a defined budget, and if the market prices rise to that level then supplies are purchased to secure against any further rises. If prices should then fall, the cap price is dropped until the bottom of the market is reached. The City wish to enter into agreements at the earliest opportunity to ensure it has the best chance to secure low prices from the market.
The wholesale market price accounts for around 52 % of delivered costs with third party charges (non-commodity costs) accounting for the remainder. The third party charges are mandatory charges and include network costs, i.e. the costs of transporting the energy to the point where it is used, and environmental levies.
Commodity and non-commodity prices are finalised each October for the following 12 months so the rates (price per kilowatt hour remains static). Amounts payable are then adjustable by reference to consumption.
Approximately 50% of our electricity will be provided via a PPA (Power Purchase Agreement) from October 22 onwards, and the prices have been set for 3 years. The prices set for each year will be subject to annual CPI indexation.
How does the Barbican Estate buy its energy?
The City of London has arrangements in place with LASER ENERGY /TGP until September 2025 to purchase electricity and gas in advance using a flexible approach to obtain the best possible outcome. Procurement is via a Framework Agreement established by LASER Energy (which is part of the Commercial Services Energy Division, a company wholly owned by Kent County Council).
A procurement Framework Agreement is an agreement put in place with a provider or range of providers that enables buyers to place orders for services. Framework Agreements are used by individual buyers to combine requirements and source services at lower prices, or with special added benefits and/or more advantageous conditions.
LASER Energy has undertaken an open tendering competition to establish a shortlist of best value electricity and gas suppliers. TGP is the supplier selected to provide electricity and gas supplies.
The City, and LASER Energy, closely monitor the utilities markets and sets caps to ensure that purchases are made within a defined budget, and if the market prices rise to that level then supplies are purchased to secure against any further rises. If prices should then fall, the cap price is dropped until the bottom of the market is reached. The City wish to enter into agreements at the earliest opportunity to ensure it has the best chance to secure low prices from the market.
The wholesale market price accounts for around 52 % of delivered costs with third party charges (non-commodity costs) accounting for the remainder. The third party charges are mandatory charges and include network costs, i.e. the costs of transporting the energy to the point where it is used, and environmental levies.
Commodity and non-commodity prices are finalised each October for the following 12 months so the rates (price per kilowatt hour remains static). Amounts payable are then adjustable by reference to consumption.
Approximately 50% of our electricity will be provided via a PPA (Power Purchase Agreement) from October 22 onwards, and the prices have been set for 3 years. The prices set for each year will be subject to annual CPI indexation.
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