peer to peer trading supplier engagement session...11 the opportunity – peer to peer trading ccs...
TRANSCRIPT
Peer to Peer Trading Supplier Engagement
Session
Friday, 23th March 2018
Agenda
• Welcome
• Introduction to CCS
• Available Opportunity
• The Procurement Process
• Next Steps
CCCCS
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Welcome to Crown Commercial Service
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Crown Commercial Service
The Crown Commercial Service (CCS) brings together policy, advice and direct buying; providing commercial services to the public sector and saving money for the taxpayer.
Executive Agency of the Cabinet Office operating as a Trading Fund
We work with over 17,000 customer organisations in the public sector and our services are provided by more than 5,000 suppliers.
Our roles include:
● make savings for customers in both central government and the wider public sector● achieve maximum value from every commercial relationship● improve the quality of service delivery for common goods and services across government
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Goals and Drivers
Strengthening the UK economy through effective
policy delivery
Maximising commercial benefits
Focusing on our customers
£12.4bn spend£6bn CG £6.4bn
WPS
£430m of CG Commercial
Benefits
£295m of WPS Commercial
Benefits
The areas CCS deliver
£520m savings by
2019/20
£420m savings by
2019/20
£520m savings by
2019/20
£540m savings by
2019/20
Facilities management
Utilities & fuels
Property maintenance
Construction
Professional services
Workforce
Employee & people services
Cloud & digital
Network services
Software licensing
Technology products & services
Fleet
Financial services
Travel
Office solutions, print, post & storage
Marketing & communications
Contact centres
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£725m commercial
benefits including savings
Identifying new opportunities to deliver superior customer
savings across power, gas, fuels, demand reduction
£1.7bn spend and £185m savings across CG and WPS (2017/18 est.)
Percentage Split of Customers – 34% CG, 35% NHS, 31% WPS
7 current frameworks and 5 in the pipeline, 14 people in Strategic
Category, and 16.5 people in Customer Operations
1100 Customers across all products
CCS Utilities and Fuels Team
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Customer Benefits
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Customers continually use the Crown Commercial Service Utilities and Fuel offering because:
The Procurement Opportunity
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Category Vision
2017 20272022
Improved data and systems - ALGO trading
(algorithm based computer trading)
Distributed Network ‘ The Internet of Things’
(Demand Side Response) Virtual
management of power usage
Increase in use of Power Purchase
Agreements and Peer to Peer Trading
Peer to Peer enablement through Regulator and
Legislative improvements
Market Factors
Customer / CCS Factors
The Supply Market will become increasingly data driven and automated in the next decade
Complete CAA signed by Customers
Reprocure Gas and Electricity
Smart meter rollout and new and alternative fuel sources and
technology e.g. hydrogen
Potential: CCS register as own Utility provider - balance with
councils
Potential: CCS enlist third party to white label CCS Self Billing
New Customer Specialist Team to manage retention
Customers developing their own Utility companies e.g. councils, Bristol Energy, Robin Hood, GLA - increased possibility of more moving into I&C and self-supply - Do CCS want
to consider running a procurement to facilitate?
Government targets to improve energy efficiency of public sector buildings and decarbonisation
Energy Data System
Enact longer term hedging
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The Opportunity – Peer to Peer Trading
● CCS are looking to understand the potential for creating a public sector peer-to-peer (P2P) energy trading platform.
● This will enable public sector customers the option to trade excess renewable generated electricity, ● Customers who generate energy will be able to set a price and trade with other public sector
customers looking to purchase.● This will need to include billing options, working in conjunction with the HH electricity supplier● Separate engagement will be taking place to better understand this requirement
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The Opportunity – Peer to Peer Trading
Central
Government Department
NHS Trust University/School Local Authority Contaminated
Public Land
P2P Platform
Central Government Department
NHS Trust University/School Local Authority
● Electricity Imported from Grid = PAY
● Electricity generated and exported to the grid = BE PAID
● Electricity generated and sold via P2P platform = BE PAID
● Electricity generated and consumed onsite = FREE
● Electricity imported from Grid = PAY
● Electricity bought via P2P platform = PAY
● CCS is technology agnostic when it comes to the P2P platform technology● Blockchain can be used if this technology is deployable● There will be a need for a mandated close working relationship between the P2P portal provider and the
HH electricity supplier● The preference is that customers should only receive one bill, that shows the following (not conclusive)
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The Opportunity – Peer to Peer Trading
Generator uploads volume, price and duration of available electricity to platform
● Government’s aim to spend £1 in £3 with SMEs● To this end CCS would prefer a separate Lot for the provision of the P2P platform, such that it is open to
SMEs to bid for● While this does not stop non-SMEs from bidding, it does give SMEs a chance to bid, rather than tie the
provision of P2P platform to the requirements of the supplier of electricity
● We envisage the process and working relationship to be as follows:
● However, we welcome feedback on a better process, as it is our aim to make the platform easy to use for ALL parties concerned - (a) Customers, (b) P2P platform provider, and (c) electricity supplier
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The Opportunity – Peer to Peer Trading
P2P platform provider enables
visibility of the volume, price, and duration of
the offer
Customer selects
available “tariff” based on
requirements
P2P platform provider provides buyer, seller, and
transaction details, to electricity supplier
Electricity supplier adjusts
bills of buyer and seller to reflect the transaction
● Questions○ Will you have platform that can facilitate this peer-to-peer energy trading requirement ready (a) by
31-MAR-2019, (b) by 31-MAR-2020, or (c) by xxx ?○ Will your platform be able to provide assurances such that generators do NOT double dip, by
selling power to others, while also claiming FiTs or other support mechanism ?○ Do you believe blockchain (or other technology) is required to provide assurance for the above ?○ Do you believe it is possible to have a P2P energy trading platform provided by one supplier and
electricity provided by another supplier, and still have customers only receive one energy bill, as opposed to two ?
○ Working relationship between suppliers:■ Do you believe the platform provider should a separate organisation from the electricity
supplier ? Or■ Do you believe the platform provider should be in the supply chain of the electricity supplier?
○ What are the potential barriers that may be encountered in implementing a Peer to Peer platform?
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The Opportunity – Peer to Peer Trading
The Procurement Process
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Procurement ProcessPr
e- M
arke
t Eng
agem
ent Supplier Bootcamps
RFI docsOne to one meetingsCustomer Stakeholder PanelCustomer QuestionnaireFinal Business Case and Procurement Strategy
Tend
er S
tage Development of Tender DocumentsDevelopment of T&C’sDevelopment of SpecificationDevelopment of PQQ and Award criteriaTender Response EvaluationFramework Award Fr
amew
ork
Man
agem
ent
Customer onboarding processManagement of Supplier performanceStrategic framework developmentContinuous Improvement and Innovation
What Happens Next?
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Timelines
2018
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2019
PIN Publication
Jan 18
FBC & SD ApprovalMay 18
OJEU & PQQ Publication
Aug 18
ITT Publication
Sept 18
Response Deadline
Oct 18 AwardJan 19
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Next Steps
Supplier Engagement
Slides will be sent out and available online following meeting
● Supplier RFI release● Supplier 1-2-1’s (London and Liverpool) ● Project Update Meetings - on going
We will also be issuing regular updates on our progress on our dedicated webpage including presented materials.
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Questions?
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How to Keep in Touch
Electricity Procurement Inbox:[email protected]
Project Webpage:http://ccs-agreements.cabinetoffice.gov.uk/procurement-pipeline/supply-electricity-rm6011-and-gas-rm6012-procurements
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Contact Details
Elaine Malone (Electricity Lead)Portfolio Development [email protected]
Kristen Green (Gas Lead)Category [email protected]
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Joe Ernst-HermanDirector of Utilities and [email protected]