According to EU legislation, all contracts from the public sector which are valued above a certain threshold must be published in the Official Journal of the European Union – OJEU for short, formerly known as OJEC.
Who does it cover?
The legislation covers organizations and projects receiving public money and states that they must advertise a tender in the OJEU.
Further, some privately funded/managed projects will also be covered by this legislation if in receipt of more than 50% funding from public funds.
The threshold for utility contracts is set at €443,000 (£363,424) as of 1st Jan 2018. This figure relates to the total value of the contract (not the annual value) and so if projected spend under an electricity contract were (say) €250,000/annum and a 2-year supply agreement were signed, then the total value of the contract would be €500,000.
Key factor – timing
Another key factor is timing as there is a requirement to allow at least 52 days between sending a tender to OJEU and the closing date. As such it is vital that work on re-negotiation of a supply contract is commenced well in advance of the actual renewal date.
Further details can be found here.