What We Do
In 1999, Government Procurement Service developed a strategy to replace the traditional, 'fixed term', 'fixed price' system under which annual or even two-year electricity and gas supplies had to be purchased on a single day. This was a hugely high-risk strategy, with just a 1-in-250 chance, or 1-in-500 for two year contracts, (given 250 working days in the year) of getting the best price.
In place of this most, public sector needs are channelled through Government Procurement Service. We aggregate their volumes and buy in multiple ‘chunks’ on the wholesale commodity markets over a much longer period of time, thus avoiding the high-risk strategy of single day purchasing.
Combined with this flexible procurement approach, we adopt robust risk management strategies, which, in a highly volatile market, avoid fixing prices at their highest. (To maximise energy risk management, minimum volumes are required that are significantly above the needs of individual customers.)
Furthermore, aggregating our customers' volumes, gives us (and therefore you) the buying power to drive down prices in a way individual organisations cannot.
Since 1999, this approach has helped customers manage budgets and gain cashable savings.
Government Procurement Service has a range of risk management options to suit all needs, from 1 to 3 year options, including price locks before delivery year, or – for those with more flexibility – variable prices throughout the year. Find out more about our flexible risk management approach.
Of course, buying value-priced energy on the wholesale market is only half of the challenge. Supply and delivery is the other. This too is an area in which we have developed outstanding solutions. Find out how we select our suppliers and why we choose the ones we do, in our strategy for supply.