The Ministry of Justice (MOJ) procures its energy (gas and electricity) via the Crown Commercial Services (CCS) Supply of Energy framework.
Through this framework, mitigation against future energy price rises is provided due to the way in which the vast majority of the MOJ’s future requirements are traded by the CCS Energy Trading team over a 30-month rolling basis under what is termed the V30 basket, and to a lesser proportion over a 6-month period using the L6 basket. This provides flexibility for the CCS team to trade the basket according to an agreed hedging strategy that enables them to wait-out periods of high prices until market conditions become more favourable.
Similarly, CCS use market intelligence to identify trends in energy prices to trigger the purchase of future energy requirements before prices begin to rise, as was seen last year when they traded the vast majority of the 2022 basket before prices reached the unprecedented levels subsequently seen later in 2021 and continuing into 2022.
The MoJ is also working to reduce demand by:
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