Electricity generators are being invited to bid for a long-term contract to supply energy to the Government.
It is the second project under the ‘Energy for Growth’ scheme, which uses the government’s combined buying power and enters contracts directly with generators to provide electricity at a set price.
Last year, the Government signed a 20-year power purchase agreement (PPA) with Air Products to buy electricity at a fixed price from 2016, which is estimated to save around £97 million and help create 750 jobs in Teeside.
The Government’s Crown Commercial Service, the UK’s largest energy customers, spends £1.6 billion on gas and electricity every year. It buys energy for around 75% of the entire public sector which accounts for 3% of the total UK demand.
Cabinet Office Minister Francis Maude said: “We are reforming Whitehall to get the best possible value for hardworking taxpayers, saving £10 billion in 2012 to 2013 alone.
“Energy for Growth ensures the security of our energy infrastructure – it’s good for the industry, good for taxpayers and supports this government’s long-term plan for a stronger economy.”