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10th August 2016

NEPO's Electricity Framework

On 21st April 2016 NEPO extended the current Electricity Framework with npower for a further two years effective from 1st April 2017. The extension was formalised following a comprehensive consultation with the eleven NEPO Member Authorities. The spend through the framework is approx. £56M per annum. The framework is used by all eleven Member Authorities and a number of NEPO Associates.

As part of the extension agreement a further £150K of savings have been agreed as a result of reduced supplier management fees. In addition NEPO has secured Levy Exemption Certificates (LECs) free of charge until 31st March 2018 after which the Government will remove the associated regulatory scheme. The LECs allow Member Authorities to state their electricity has been matched from renewable generation sources. The industry value of the LECs secured by NEPO from npower is £303K. In addition a number of important operational improvements have been agreed by NEPO in the Framework extension negotiations.

The call-off contracts between the Member Authorities and npower for the extension period are currently being drafted. Over the next twelve months NEPO will also commence the planning of a procurement project for the renewal of the NEPO Electricity Framework to commence 1st April 2019.