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:rm6011procurement@crowncommercial.gov.uk

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 Leadelaine.malone@crowncommercial.gov.uk

Kristen Green (Gas Lead)Category Managerkristen.green@crowncommercial.gov.uk

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Joe Ernst-HermanDirector of Utilities and Fuelsjoe.ernst-herman@crowncommercial.gov.uk