Transcript Slide 1

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Agenda
 Background and Concept
 Sharing the benefits
 Current Members
 Contract Set Up
 Contract Structure & Benefits
 What the members are saying
 Marketing
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Background & Concept
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Collective energy procurement service for UK arts organisations

Founding members: Royal Albert Hall, Royal National Theatre & Royal Opera
House
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Arts orgs supporting one another
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Main objectives:
 Provide members with a transparent and mutually beneficial platform to obtain
competitively priced energy supply contracts
 Deliver savings against the financial plan and the average market
 Protect the members’ budgets

Best value for all members
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Costs are fairly allocated
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Set up as flexible contract – allowing PE to purchase energy directly in the
wholesale market
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Timing and rules for energy purchases defined & governed by Risk Management
Strategy
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Sharing the benefits
 Pooling energy together – more attractive to suppliers
 Leverage from Multiple brands
 Access to wholesale market
 Arts basket dedicated support team
 Experts handling managing your procurement
 Driving down energy costs and building green credentials
Transparent reporting
 1st Year savings = 7% below market, Yrs 2 & 3 below market 8%
 Contract in place easy to join
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Current Members
Founding Members
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Contract Set Up
 Half hourly electricity contract set up in April 2012
following competitive tender process
 Contract awarded to Scottish & Southern based on:
 Lowest price
 Fixing of most non-energy charges – only RO, DUoS & TUoS are
passed-through, but fixed for 12 months at a time
 Attractive contract features, including:
 Favourable trading arrangements – full access to wholesale market
prices & provision of sell-back facility
 Ability to actively manage customer portfolios
 Risk Management Strategy is in place and showing the
benefits
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Contract Structure & Benefits
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36 month flexible contract commencing 01 October 2012 following a
competitive tender
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Favourable trading arrangements – full access to wholesale market
prices & provision of sell-back facility
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Customer-specific pricing
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Billing in line with simple fixed price contracts – rates set in 12 month
intervals
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Fully inclusive day/night unit rates
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Standing charge
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Available capacity charge
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100% Renewable Energy supplied at discount on CCL rate
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Annual +/- 15% volume tolerance on group level
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Ability to re-forecast contract volume at any time
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Ability to add & remove sites
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Ability to add new customers
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Risk Management Strategy
 Risk Management Strategy set up by PE
 Agreed with founder members and applied to all basket members
 Based on clients objectives and PE view on current and future
markets
 Setting of budgets for entire contract term
 Objectives:
 Conservative approach to risk
 Protecting customer budgets
 Minimising costs
 Tactics:
 Controlling risk through tiered purchasing
 Utilisation of a range of purchasing triggers – stops, trailing stops,
targets, time limits
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Scottish & Southern Sustainable Generation
Technology
Biomass
2012/13
2013/14
2014/15
2015/16
10%
7%
6%
5%
Hydro
7%
6%
6%
6%
Landfill Gas
1%
1%
0%
0%
49%
58%
62%
62%
0%
0%
0%
0%
Waste
10%
0%
0%
0%
Off-Shore Wind
23%
28%
26%
27%
100%
100%
100%
100%
On-Shore Wind
Photovoltaic
Total
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What the members are saying.....
Jessica Hepburn, Executive Director, Lyric Hammersmith
‘ It’s fantastic to be collaborating with our peers to improve our
collective sustainability. The Lyric is fully committed to being a leader
amongst arts venues who want to reduce their impact on the
environment and we are delighted that the Arts Basket has become a
major part of our green arsenal’
Sally O'Neill, Director of Finance, Royal Opera House
“The Arts Basket is a major opportunity for venues like ours to cut
energy costs which are a significant overhead. We want to encourage
other arts venues and theatre managers to consider applying to join the
Basket.”