1st May 2009
By David Scott in Edinburgh
A groundbreaking deal to supply electricity to the entire public sector in Scotland was set to be announced by Finance Secretary John Swinney on April 30.
Giving details of the national bulk-buying project, the minister was due to say the deal would save taxpayers up to £10m a year and help public bodies ‘go green’.
Following a tendering process, contracts to supply electricity to all public bodies have been awarded to two suppliers — Scottish Power and Scottish & Southern Energy.
The Scottish Government said the savings would come from bulk buying and the new arrangement would reduce electricity demand and promote greener power.
The Scottish public sector spends around £200m a year on electricity. It will be up to individual public bodies such as councils, health boards, universities and colleges to decide whether they wish to take advantage of the deal, which will be available from this autumn.
However, Swinney suggested the vast majority of public bodies had recognised the benefits. A Scottish Government source said that about 95% of the public sector had already decided to take advantage of the deal.
Swinney said: ‘At a time of high energy prices, this government has secured significant savings for taxpayers, allowing £10m a year freed up by efficiencies to be spent on other frontline services.
‘On top of saving money, this contract will create a greener Scotland. The public sector needs to show leadership if we are to achieve the ambitions of our Climate Change Bill.’
Tendering for the contracts was carried out by Procurement Scotland, which develops and implements procurement strategies on behalf of all Scottish public bodies.
The electricity deal is one of a series of ‘recession beating measures’ announced by Swinney.
