Electricity Supply and Solar Infrastructure

Scope, procedure and submissions

Id

ocds-h6vhtk-05f028

Status

complete

Published risks

Financial distress of the Supplier: There is a risk that the Supplier may enter financial distress or insolvency during the term of the contract. The contract mitigates this by allowing PW to terminate the contract and either (1) pay an agreed discounted termination amount and take ownership of the new assets; or (2) require the Supplier to remove the new assets. These provisions protect PW from the risk of orphaned assets, but financial distress remains a residual risk to the satisfactory performance of the contract. Regulatory change: Future amendments to electricity regulations could affect the economics of the contract. The contract includes a change mechanism to ensure continued compliance with laws, whilst maintaining the original commercial positions of the parties. While this change mechanism provides flexibility, regulatory change remains a residual risk to the satisfactory performance of the contract.

Procurement Method

direct

Procurement Method Details

Direct award

Why this procedure was chosen

The procurement is proposed to be awarded to the Wattserve Itchen Limited under the exemption for a public contract awarded without competition for technical reasons (Schedule 5, Paragraph 6), on the basis that: 1. The relevant premises already host an operational solar supply owned by Brockhampton Solutions Limited ("BSL") under an existing power purchase agreement with Portsmouth Water ("PW"). A key feature of the proposed arrangement is that BSL will continue to operate its existing solar assets on the relevant premises and supply electricity to PW under the terms of the existing power purchase agreement. The Supplier will only supplement any shortfall in electricity needed by PW on the premises using the new generation assets and/or grid supply. The Supplier will manage the export and import meters on PW's supply circuit and act as BSL's agent in exporting any surplus electricity generated by BSL's existing assets. Any behind-the-meter solution must be integrated with BSL's existing assets and contractual arrangements and PW's supply circuit. PW is therefore technically constrained to work within the framework established by BSL, making this integration a defining feature of the proposal. 2. PW has explored alternative solutions in the market. However, any solution must be compatible with BSL's existing contractual and operational requirements. As a result, while other solutions may exist in principle, they are not reasonable alternatives for the purposes of Schedule 5, Paragraph 6, because PW is bound by BSL's mandates regarding the transaction. The distinction between "substitutes" (other potential solutions) and "reasonable alternatives" (feasible options that meet PW's technical and contractual constraints) supports this conclusion. In addition Wattstor Itchen Limited have also incorporated into the solution certain exclusive intellectual property and commercial terms that are not otherwise available on the open market.

Lots and requirements

Published documents

Buyer, suppliers and contacts

Award information

Recorded locations

• Buyer location · Havant · UKJ35 · PO9 1LG · United Kingdom