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 www.ojeu.eu
How can Control Energy Costs help?
Where Control Energy Costs is involved, we deal would deal with this via MyTenders e-procurement, a portal for publishing OJEU tenders to ensure that our clients comply with the legislation. Further details can be found here www.mytenders.co.uk
For any existing or prospective client, we would go through the process detailed above on their behalf to ensure that they comply with legislation. In practice, once suppliers have responded to the initial tender, we would then be free to negotiate with them as ‘interested’ parties to secure a competitive contract offer.
If you would like to check whether your business will be required to comply, please get in touch. We would be happy to offer an opinion