For the first time the Government is looking for tenders for the supply of electricity to all public bodies in Scotland in one deal.  This will replace the hundreds of individual contracts currently in place, worth £200m a year. 

The deal which will cover the whole public sector including councils, health boards, universities and Scottish Government agencies, is expected by the Government to render savings of £15m over three years.  It will come into force next autumn. 
 
In times of soaring energy bills the new strategy is designed to save taxpayers’ money by streamlining the management of numerous different contracts.  It aims to reduce risk by purchasing tranches of energy over a longer period, guaranteeing certainty of pricing in advance. 

Commenting on the strategy Finance Secretary John Swinney said:          

"As energy prices are rising, this Government will take all practical steps to protect the public purse. The national procurement of electricity will be important in minimising the impact of spiralling prices on the public sector.

"As well as getting best value for money, this will support the Government's efforts to reduce greenhouse gas emissions and make Scotland greener. The contract will provide public bodies with access to energy management measures such as advanced metering, small scale renewables initiatives and opportunities to sell electricity into the grid.

"We are doing all we can to relieve the pressure of rising fuel costs on Scotland, through a range of government programmes.  Given that the UK Government is benefiting from an energy tax windfall, we want the Chancellor to introduce measures to help, for example the introduction of a fuel duty regulator.

"Our national electricity strategy move is a further step in the radical public procurement reform programme. If maximum benefits are to be derived from this initiative, it is imperative that take-up of the contracts is as high as possible.  I therefore want all Scottish public bodies to build on the excellent collaboration so far by committing to use the national contract in the future."