To ask the Scottish Executive what action it has taken to reduce the cost of (a) electricity, (b) gas and (c) water provided to buildings for which it is responsible.
The Scottish Government has a range of measures in place to ensure we are achieving the best value for money from the use of utilities. We have developed, and continue to develop, a range of initiatives aimed at improving the operational efficiency of our building stock and raising awareness among staff of the need to reduce consumption.
We also take steps to ensure that our procurement of utilities provides the best possible value for money as follows:
Following a competitive tendering process under EU procurement rules, Procurement Scotland has awarded a contract for the supply of electricity to Scottish Power and Scottish and Southern Energy.
This new contract aims to reduce and manage financial risk in the current volatile market conditions by adopting a flexible procurement model. This involves purchasing tranches of energy over a longer period within a risk management framework, and is similar to that currently used by Office of Government Commerce (OGC) buying solutions and recommended by OGC as current best practice.
The public sector working together has resulted in annual cost savings of approximately £10 million through aggregation of demand and buying flexibly on the wholesale market
Procurement Scotland is also currently undertaking a tender exercise for the implementation of national contract for the supply of gas. The procurement strategy will follow that of the electricity contract and will commence on 1 April 2010 for an initial period of three years to 31 March 2013.
In addition, Procurement Scotland is currently analysing the water market to identify and develop a strategy in line with the Procurement Reform Programme which will provide opportunities for benefits to the public sector on a national level.