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Demand Side Response

Contract ID: RM3792

Start Date: 21/06/2017

End Date: 20/06/2020

Description

Reduce electricity costs by taking part in an aggregated demand side response (DSR) scheme.

 

 

In a demand side response (DSR) scheme customers are incentivised financially to lower or shift their electricity use at peak times. This helps transmission and distribution network operators to manage or ‘balance’ the load (power output) on electricity networks to ensure supply meets demand.

DSR schemes can either call for additional capacity to be generated and supplied to the grid to meet demand, or call for consumers to reduce their demand.

Both of these aims can be achieved from assets used widely across the public sector. For example, combined heat and power (CHP) systems and back-up generators can be used to increase supply. Buildings management systems can be used to reduce demand during peak hours by varying demand from non-essential equipment such as air conditioning.

In addition to these DSR network schemes there are opportunities for customers to derive savings from the reduction of electricity consumption from the grid during peak times which incur fixed transmission and distribution costs. These can be accessed by contacting your electricity supplier.

Many public sector organisations already participate in demand side response schemes to generate additional revenue and reduce energy costs, including hospitals, universities, the Ministry of Defence and local authorities.

 

 

Benefits

  • Generate revenue from electricity network operator schemes managed by the National Grid and distribution network operators
  • Reduce overall energy costs by decreasing electricity consumption during the most expensive times
  • Enhance asset reliability and improve on-site resilience by running back-up generators regularly
  • Help reduce national carbon emissions
  • Simple to use framework with expert procurement advice available where required
  • Easily identifiable revenue and cashable savings with an approved benefits methodology.

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Access

Read the attached customer guidance document and review the call-off terms and conditions for the framework.

Before selecting your supplier, you may wish to undertake fair and transparent pre-market engagement activity with the framework suppliers. This can be done via the CCS eSourcing suite, or using the contact details provided on this page.

 

Direct award

You may place direct orders providing you establish a clear statement of requirement for the services required and apply the direct award criteria.

 

Further competition

You will be required to manage the process in accordance with your own requirements and processes. Information about running a further competition through our e-sourcing suite can be found in the customer guidance attached. A detailed process map can also be found in our customer guidance.

 

In summary, your further competition should:

  • Specify a fixed time limit for submission of proposals, taking into account factors such as the complexity of the services, the requirement and the time needed to compile and submit a proposal)
  • Seek proposals for fulfilling the requirement, including agreement to any special terms proposed by you
  • Contain a copy of the order form, completed as if it were the order to be placed.

You should then evaluate the proposals received and notify all invited service providers of the outcome. Place the resulting order with the service provider who has submitted the most economically advantageous tender.

The high-level evaluation criteria must match those used when tendering for the framework and be grouped under the following headings:

  • Quality: 40% (+/- 10%)
  • Price: 60 % (+/- 10%)

The total score must come to 100%. Sub-criteria can then be placed under these two headings, specific to your requirements. Schedule 6 of the framework agreement provides guidance on further competition award criteria.

 

 

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Savings

There is both revenue generated from participating in DSR and savings which arise from not using grid supplied electricity during the most expensive times. The network operator or distribution network operators pay the aggregator for capacity and the aggregator then passes on that revenue to you.

It should be noted that revenue and savings cannot be guaranteed as the schemes are only operated in response to system stress events.

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Background

The Framework Agreement replaces the previous framework reference number RM964.

This new framework agreement RM3792 runs for an initial framework period of 3 years from 21/06/2017 with the option to extend for a further 12 months.

This Framework Agreement is available for use by all UK public sector bodies including (but not limited to) central government departments and their agencies, non-departmental bodies, NHS bodies and Local Authorities. For absolute assurance of who can access the framework please check the OJEU notice.

All suppliers have been appointed onto our framework agreement following the successful completion of a rigorous EU compliant tendering exercise.

Lot details

This is a single lot framework agreement. The full description can be found in the Specification. This is available for download from the documents section of this web page. 

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Lot details

Lot Number Lot Name Lot Category Number of Suppliers Contract Expiry
1 Demand Side Response Energy 6 - click here to view suppliers 20/06/2020

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Framework Manager Contact Details

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