Manchester City Council signs £3.6m gas deal with Gazprom Energy

The deal will see Gazprom Energy provide 149 million GWh of gas, and the framework can be extended for three additional years.

By Freddie Rand

Manchester City Council has signed a one year contract estimated at £3.6m with Gazprom Energy for the supply and management of gas to over 350 council sites, including leisure services, offices and the majority of schools. Moving to Gazprom Energy will provide significant savings on the council’s energy bills, as well as access to regular consumption data via automated meter reading (AMR) technology and energy services to enable efficient and accurate management of future expenditure.

The contract follows the council undergoing an Official Journal of the European Union (OJEU) tender process in which Gazprom Energy was scored on price and service, and achieved higher than other energy providers. Gazprom Energy also scored highly in social value due to its apprenticeship scheme and its Manchester presence, meaning that the deal would also contribute to the local economy.

Through the contract Gazprom Energy will not only provide gas to Manchester City Council, but also to some neighbouring councils, with the framework being available to all ten Greater Manchester Combined Authorities. The contract is on fixed pricing terms, giving all participating councils greater budgeting ability.

Gazprom Energy worked closely with Manchester City Council to implement high quality automated meter reading (AMR) technology to enable half hourly gas consumption data across the whole of the area. This will give the council a range of benefits including accurate bills and greater insight into energy usage.

The deal will see Gazprom Energy provide 149 million GWh of gas, and the framework can be extended for three additional years.

Walter Dooley, Head of Energy Management at Manchester City Council says: “As an organisation with such a diverse set of buildings that offer a whole range of facilities, our energy requirements are complex. We needed a provider that could offer not only good value for money but also ongoing customer service whereby they could react quickly. Gazprom Energy met our requirements.”

Nathan Smith, Senior Contract Negotiator at Gazprom Energy, says: “Our deal with Manchester City Council is one sign of our increasing presence in the public sector. Energy cost savings are particularly an area of focus for local authorities as they strive to maximise budgets in key council activities. By providing the real-time access to consumption data, they can constantly review their usage and minimise costs.”

View more Gazprom Energy customer stories and case studies online here; https://www.gazprom-energy.co.uk/business-energy/case-studies/.

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