Energy Purchasing Group

Overview

Background

A number of companies are working to form an Energy Purchasing Group to assist each member company in saving money, time, and effort through the power of group purchasing.

The Energy Purchasing Group will open on a regular basis to admit new members. It is open to all Private Sector companies and Not-For-Profit organisations who would like to go to market as a group when sourcing suppliers of energy management solutions and services so that they can maximise value for money.

Project Description

Currently, energy prices are spiralling upwards and the increase in volatility is projected well into 2022. The current forecast is that month-to-month spot pricing is all that will be offered to companies until the end of Q1 2022 at the earliest.

The aim of this notice is to:

1. Identify a pool of Irish companies interested in buying as a collective via the above-mentioned Energy Purchasing Group.
2. Take advantage of the Energy Purchasing Group’s purchasing power to negotiate contracts with some of Ireland's top energy management suppliers, so that all members of the Energy Purchasing Group can reduce their energy costs.

The different types of supplier contracts to be negotiated is expected to start with:

1. Energy Management Audits.
2. Followed by Energy Management Products and Services such as:
   1. Lighting management;
   2. HVAC & heating management;
   3. Fleet management; and
   4. Energy procurement.

However, it is expected that members of the Energy Purchasing Group will be able to opt out of signing up for specific deals if they already have arrangements in place (e.g., completed energy management audit) or no need for specific services (e.g., no fleet management needed) prior to joining the Energy Purchasing Group.

A high-level description of each of these different types of supplier contracts is outlined in the General Instructions section below.

Business Requirements

The selected companies will be required to sign up to a Memorandum of Understanding agreeing to a standard set of terms and conditions outlining how the Energy Purchasing Group will operate (e.g., regular meetings, any mandatory participation levels).

Failure to meet agreed deadlines and quality standards will be subject to any financial or other penalties as agreed by the members of the Energy Purchasing Group.

Other key requirements of member companies could include:

1. Attend account meetings to discuss the requirements of the Energy Purchasing Group and to discuss business opportunities, including but not limited to Sequencing and scheduling of plans to go to market for new suppliers, and confirming participation.
2. Provide information requested in a timely manner to enable the Energy Purchasing Group to go out to market to negotiate contracts with suppliers, e.g., including documentation on their:
   1. Energy usage and electricity bills.
   2. Number of buildings.
   3. Geographical spread of locations.
   4. Size of fleet and split between fossil fueled engines, hybrid engines and electric engines etc.

Key Risks, Constraints & Dependencies

This is a cost saving exercise that is reliant on the number of companies that opt into the Energy Purchasing Group. The success of the Energy Purchasing Group depends on the level of support provided by each member company. As a result, members of the Energy Purchasing Group will be required to actively participate in the scheme, as this will be to the benefit of all member companies.