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Is your Public Sector Buying Group actually saving you money?

Sep 06, 2017

Is your Public Sector Buying Group actually saving you money?

Many Public Sector Buying Groups (PSBGs) can only offer one utility supplier. Some lack transparency through their commission-based fee structure. That is neither value for money, nor competitive. STC Energy has already saved public sector organisations millions through transparent fees, a multi-supplier framework and by ensuring that they only pay for what they use.

Limited time, resource and a complex market leads many public sector organisations to simply renew their existing contract, with lengthy notice periods for ending a PSBG contract also having a significant impact on their decision to switch.


STC believes that this ongoing cycle of simply renewing a contract once it is up is what keeps many PSBGs in business. However this does not ensure that you are receiving the best deal for your requirements.


Transparent fees


Many public sector organisations do not know what they are paying their PSGB because fees will often be embedded into their utility bill.


Given the budgetary pressures faced by the public sector, STC believes it is essential that value for money is achieved and that all fees are transparent and understood from the outset.  


Freedom of choice

If a PSBG only uses one supplier, as some do, the energy they procure is not being competitively priced or benchmarked against other suppliers. It also raises the question of what incentive the PSBG receives from that supplier.

But there are other independent utility consultancies that can deliver a better deal.

STC offers an OJEU compliant multi-lot/multi-supplier framework, which gives public sector organisations the opportunity to choose from 14 utility suppliers.

The framework means that a utility supplier can be chosen based on your requirements and not just because that is the only option presented to you. This access to a wider offering can often lead to reductions in your energy consumption and greater cost savings.


Only pay for what you use

Many PSBGs are purely procurement-based and provide little added value. Energy consultants such as STC offer a wide range of added value services.

For example, services such as bill validation can help save between 3-5% on your utility expenditure.

Because suppliers’ contracts and invoices are complex, it is inevitable that some will contain billing errors. Such errors are very common and over the last two years, STC has recovered over £36m in utility billing errors for its public sector customers.

Given such budgetary pressures and limited choice, can you afford to simply renew your contract with your PSBG?

Renewing your utility contract? Contact STC Energy on 0208 466 2900 or, to ensure you receive the best value for your budget.