Section 1.4: Procurement Strategy (15%)
- Section 1.1: Full Managed Service Consultancy (20%)
- Section 1.2: Legal Compliance (20%)
- Section 1.3: Recharge Strategy (10%)
- Section 1.4: Procurement Strategy (15%) ← You are here
- Section 1.5: Complaints Management (15%)
- Section 1.6: Handover & Mobilisation (10%)
- Section 1.7: Sustainability (10%)
- Annex 4: Service Matrix (Pass/Fail)
L7 Energy understands the UKGBC Gold Standard for energy procurement as a best-practice framework requiring that energy procurement decisions are:
- Strategically aligned to net zero and decarbonisation pathways
- Transparent, competitive, and well-governed
- Based on whole-life value rather than short-term price alone
- Proportionate, evidence-based, and defensible
- Designed to minimise unintended cost and risk transfer to occupiers
We recognise that UKGBC Gold Standard procurement emphasises process quality and decision governance, not simply the selection of "green" tariffs.
This aligns to the Service Matrix (Annex 4) as applicable.
L7 Energy applies a structured procurement methodology designed to meet UKGBC Gold Standard expectations while minimising cost and risk to landlords and occupiers.
| Element | Approach |
|---|---|
| Flexible procurement windows | Informed by real-time market conditions and forward curve analysis |
| Scenario analysis | Comparing fixed, flexible, and blended purchasing strategies |
| Volatility management | Avoidance of unnecessary long-term price fixing during periods of high volatility |
| Market intelligence | Regular briefings on wholesale market movements and their implications |
| Risk Category | Management Approach |
|---|---|
| Wholesale price volatility | Formal assessment and scenario modelling |
| Contract rigidity | Evaluation of break clauses and flexibility options |
| Counterparty risk | Supplier financial resilience assessment |
| Risk allocation | Explicit consideration of how procurement risk is allocated between landlord and occupier |
| Long-term exposure | Avoidance of strategies that embed unmanaged cost exposure |
- Competitive tendering with documented evaluation criteria
- Assessment of supplier financial resilience, ESG credentials, and reporting capability
- Preference for suppliers able to support transparent billing, audit trails, and sustainability reporting
- Evaluation of supplier alignment with Heat Networks Regulations and other emerging requirements
Our Loop platform supports UKGBC Gold Standard procurement through:
- Documented procurement rationale aligned to UKGBC principles
- Clear audit trail of decisions, assumptions, and trade-offs
- Procurement outputs designed to support wider ESG, SECR, and stakeholder reporting
- Version-controlled decision records ensuring defensibility
L7 Energy balances sustainability objectives with affordability by:
| Principle | Application |
|---|---|
| No "green premium by default" | Sustainability options evaluated on merit, not assumed |
| Total-cost comparison | Renewable and non-renewable options compared on whole-life cost and risk basis |
| REGO-backed renewable electricity | Selected where it delivers demonstrable value |
| Proportionate decisions | Sustainability aligned to asset type, occupancy model, and resident impact |
This approach ensures alignment with UKGBC Gold Standard without imposing unnecessary cost on landlords or occupiers.
Context: 850-unit BTR portfolio across 3 London developments
Approach:
- Competitive electricity procurement aligned to UKGBC decision-making principles
- Market-timed procurement using blended fixing strategy to manage volatility
- Renewable electricity selected following comprehensive cost and risk comparison
- Resident impact assessment ensuring affordability
Evidence of Gold Standard Alignment:
| UKGBC Principle | Evidence |
|---|---|
| Transparent supplier selection | Documented tender process with scored evaluation |
| Risk management | Blended fixing reduced exposure to wholesale volatility |
| Cost control for residents | Avoided green premium; renewable option competitive on total cost |
| Decarbonisation alignment | 100% REGO-backed supply supporting Scope 2 reporting |
Governance Artefacts:
- Tender pack with evaluation matrix and scoring criteria
- Decision paper with board/stakeholder approvals
- Risk register including hedging plan and volatility scenarios
Outcome: 8% cost saving vs. incumbent supplier; 100% renewable; documented audit trail
Context: Mixed-use estate comprising office, retail, and residential with district heat network
Approach:
- Estate-wide procurement strategy covering communal and landlord supplies
- Supplier evaluation weighted for ESG credentials, reporting capability, and governance
- Explicit avoidance of over-specification that would increase occupier cost
- Procurement designed to support Heat Networks Regulations compliance
Evidence of Gold Standard Alignment:
| UKGBC Principle | Evidence |
|---|---|
| Whole-estate perspective | Single coordinated strategy across all uses |
| Proportional sustainability | Renewable options evaluated per use-type; not mandated universally |
| Clear governance | Procurement board approval with documented rationale |
| Audit trail | Decision matrix retained for regulatory and stakeholder queries |
Governance Artefacts:
- Tender pack with weighted evaluation criteria (price, ESG, reporting)
- Decision paper documenting trade-offs and proportionality rationale
- Risk register covering counterparty and regulatory compliance risks
Outcome: Consolidated supplier relationship; improved reporting capability; no cost escalation
Context: 12-building London office portfolio under single ownership
Approach:
- Aggregated demand across multiple assets to improve pricing leverage
- Competitive tendering supported by documented evaluation criteria
- Procurement outcomes aligned to landlord sustainability targets without cost escalation
- Staged contract structure enabling market re-entry at optimal points
Evidence of Gold Standard Alignment:
| UKGBC Principle | Evidence |
|---|---|
| Value through aggregation | Portfolio buying power reduced unit rates by 6% |
| Reduced risk exposure | Shorter contract terms with defined review windows |
| Transparent decision-making | Evaluation criteria shared with all bidders; scoring documented |
| Sustainability integration | Carbon reporting capability included in supplier requirements |
Governance Artefacts:
- Aggregated tender pack with portfolio demand analysis
- Decision paper with evaluation scoring and recommendation
- Risk register including contract term and market re-entry strategy
Outcome: £180,000 annual saving; enhanced reporting; defensible procurement record
Our procurement approach is supported by the Loop platform's data capabilities:
| Capability | Procurement Benefit |
|---|---|
| Historical consumption analytics | Accurate demand forecasting for procurement |
| Multi-site aggregation | Portfolio-level demand visibility for bulk purchasing |
| Supplier bill validation | Verification that contracted rates are correctly applied |
| Carbon reporting | Automated Scope 2 calculations supporting REGO verification |
| Audit trail | Procurement decisions linked to consumption data and outcomes |
L7 Energy delivers UKGBC Gold Standard energy procurement by applying:
✅ Structured market engagement – Timing, scenarios, and competitive tendering
✅ Formal risk management – Volatility, counterparty, and allocation assessment
✅ Transparent governance – Documented decisions, audit trails, defensible rationale
✅ Proportionate sustainability – Green options evaluated on merit, not assumed
This ensures procurement outcomes support decarbonisation objectives while minimising cost and risk to both landlords and occupiers.
[End of Section 1.4]
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