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How we aggregate consumption

How we aggregate consumption

Government Procurement Service has a portfolio of customers each with a number of individual sites and different consumption profiles. 

Our suppliers aggregate consumption based on historic data for half hourly metered supplies or deemed usage for non half hourly sites within the portfolio of customers and agree with Government Procurement Service the aggregated volume of energy that needs to be purchased for each supply period to satisfy all customer requirements.

This volume is broken down into tradable blocks. For electricity, this is normally 10Mw (10 Mw used every hour of every day in the year) of both baseload and peakload (electricity used between 7 am and 7 pm on weekdays only), as well as a small proportion of what is known as ‘residual’ volume (volume which falls into neither of the above categories). Here's an example of how this might look :

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Average daily profile is aggregated into an annual profile with all other client usage.

Government Procurement Service will make purchasing decisions throughout the relevant purchasing period to fulfil this volume requirement. The actual price of electricity under each portfolio will be determined once the purchase of the total aggregate volume for each period is complete. 

In calculating the final price for each customer within the portfolio, our suppliers will ensure that there is no cross-subsidy for customers with different load profiles and the charges for transmission, distribution and metering will be applied at a site level, again avoiding cross-subsidy between sites and between customers within each portfolio.