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Chamber and committees

Question reference: S6W-10926

Asked by: Jeremy Balfour, Lothian, Scottish Conservative and Unionist Party
Date lodged: 7 September 2022

Question

To ask the Scottish Government whether the electricity and natural gas framework agreements offered via its procurement contracts directory will be affected by any ongoing escalation in energy prices.

Current status: Answered by Ivan McKee on 22 September 2022


Answer

The national frameworks for the Supply of Electricity and Supply of Natural Gas wholesale volumes are bought up to 2½ years in advance in tranches, following a proven ‘hedging’ purchasing strategy overseen by a cross-sectoral Risk Management Committee. The Committee comprises senior managers representing procurement, finance and energy management interests.

Whilst energy prices have risen to unprecedented levels because of global influences, the Scottish Government purchasing strategy has mitigated some of the increases. As an illustration, if we were to seek a fixed price today on the wholesale market for Electricity and Gas for 2022-2023, it would be more than double the contract prices that the Scottish Government framework currently enjoys.