Powering the UK: Inside NEPO’s Energy Procurement Process

Setting the Standard in Public Sector Energy Procurement with Laura Kyle and Marie Forster, NEPO’s Energy Leads.

At NEPO, energy procurement is not just about buying electricity and gas - it’s about delivering reliable, cost-effective, and sustainable solutions that keep public sector organisations running across the UK. With over £250 million in annual energy spend under management, NEPO’s Energy Leads, Marie Forster and Laura Kyle, lead a dedicated team navigating the complexities of the energy market to support our members’ goals.

Why NEPO’s Energy Procurement Matters

Strategic, Flexible Approaches to a Complex Market

Energy procurement at NEPO is a strategic process, designed to help public sector organisations manage price volatility, budget risks, and regulatory compliance. By pioneering fully flexible purchasing agreements, NEPO enables members to benefit from expert risk management and real-time market insight. This approach reduces exposure to price spikes and supports the integration of renewable energy sources - now a major part of NEPO’s generation mix.

Accessible Frameworks for the Public Sector

NEPO’s energy procurement frameworks are open to all UK public sector organisations through a free associate membership scheme. This includes local authorities, educational establishments, NHS bodies, registered charities, housing associations, and central government departments. Over 1,000 organisations already benefit from NEPO’s solutions, advice, and supplier engagement opportunities.

The NEPO Energy Procurement Process: Delivering Value and Confidence

Early Planning and Market Engagement

The energy procurement process at NEPO starts at least 24 months before contract expiry, allowing for thorough planning and engagement:

• Market Assessment: Analysing supply conditions and reviewing lessons from previous procurements to shape robust specifications.

• Supplier Consultation: Engaging with suppliers to ensure requirements are achievable and to encourage innovation.

• Regulatory Compliance: Following PA23 regulations for a fair, transparent bidding process.

• Contract Development: Working with legal experts to create terms that reflect the complexities of the energy market.

• Framework Award: Finalising contracts at least six months before expiry for smooth mobilisation.

This disciplined, benefit-led approach ensures that public sector organisations receive reliable and value-for-money energy solutions.

NEPO works closely with its 12 North East Member Authorities to co-develop procurement solutions. Frameworks are reviewed every 4–6 years to remain responsive to market changes and stakeholder needs, with suppliers playing an integral role in refining and delivering these solutions.

Energy Procurement That Delivers Lasting Social Impact

NEPO’s commitment goes beyond contracts. Through the gas framework supplier, Corona Energy, NEPO supported Stockton-on-Tees’ ‘Warm Spaces’ initiative with a £10,000 donation. This project provided winter warmer boxes and hardship funds to vulnerable households, demonstrating how effective energy procurement can deliver both economic and social value. The initiative’s success has secured further funding for future expansion, underlining NEPO’s dedication to ongoing social impact.

Expert Support for Every Public Sector Organisation

Energy procurement can seem daunting, especially for organisations without specialist procurement teams. NEPO provides expert guidance and frameworks to help public sector bodies confidently navigate the market, secure the right energy products at the right price, and manage risk effectively.
As an associate member, organisations gain access to consultations, supplier engagement, and tailored advice - ensuring everyone from local authorities to NHS trusts can benefit from NEPO’s expertise.

NEPO remains committed to delivering innovative, transparent, and collaborative energy procurement solutions that meet the evolving needs of the public sector. If your organisation is looking to benefit from NEPO’s expertise and frameworks, expert support is available to help you achieve your energy procurement goals.