Further two-year agreement signed for the provision of business process outsourcing to support the UK electricity industry
Logica today announced that it has signed a two-year contract extension with ELEXON for the business process outsourcing, hosting and communications aspects of the British Electricity Balancing and Settlement Systems. Logica was awarded a five-year contract worth £39 million in 2008 and this latest agreement worth £12m, has been agreed two years prior to the end of the existing contract and will see the contract run until March 2016.
ELEXON is at the heart of the UK’s electricity supply and distribution industry. They administer the Balancing and Settlement Code, which governs the wholesale electricity balancing and settlement arrangements for the UK. It interacts with over 240 companies in the electricity market and handles over 500 customer trades and over a million meter reads every day. Over £1.5bn flowed through its settlement system last year.
This latest agreement will enable ELEXON to provide proven stability and continuity of service to the electricity market whilst delivering significant cost savings to the industry through improved efficiency, and extending the life of its assets. It will also see Logica work with ELEXON to ensure that their systems are reliable and robust enough to cope with the stresses and demands that may be placed upon it in the future as the electricity market transforms. Services provided by Logica include running operational business processes, hosting and operating the central balancing and settlement systems and network used by the electricity supply and distribution industry, the meter reading process to support the central settlement functions and a service desk for ELEXON’s customers.
Tara McGeehan, UK Utilities Director, Logica, said: “We are delighted to have extended our agreement with ELEXON. Over the last four years our two companies have established a fantastic working relationship. This contract extension not only rewards that, but means we can continue to work collaboratively to enable ELEXON to provide the best level of service through a significant period of change for the electricity industry.”
Peter Haigh, CEO, ELEXON, said: "We are delighted to extend our contract with Logica who have demonstrated a real understanding of our requirements and the challenges we face within the industry. The relationship we have built up and maintained with Logica over the past few years has been a truly collaborative one which is supported by the extension of this contract. We look forward to working together to help deliver potential changes for our customers, settlement and the energy industry”.
Logica is a business and technology service company, employing 41,000 people. It provides business consulting, systems integration and outsourcing to clients around the world, including many of Europe's largest businesses. Logica creates value for clients by successfully integrating people, business and technology. It is committed to long term collaboration, applying insight to create innovative answers to clients’ business needs.
Logica is listed on both the London Stock Exchange and Euronext (Amsterdam) (LSE: LOG; Euronext: LOG).
More information is available at www.logica.com.
The company is a public company incorporated and domiciled in the UK. The address of its registered office is 250 Brook Drive, Green Park, Reading RG2 6UA, United Kingdom.
ELEXON delivers balancing and settlement services which are critical to the successful operation of Great Britain’s electricity trading arrangements under the Balancing and Settlement Code (BSC). We manage processes and systems from meter to bank to ensure that residential and business electricity settlement occurs seamlessly. In so doing, we handle over £1.5 billion of our customers’ funds each year and interact with over 240 companies in the electricity industry. They, in turn, supply over 28 million customers in Great Britain.
As part of our role, we are responsible for managing, operating and implementing change to one of Great Britain’s most significant energy industry codes. We are experts in procuring and managing contracts for the systems and processes that we manage. And we ensure that performance standards and BSC obligations are met so our customers have confidence that the BSC operates efficiently, accurately and fairly.
Over the past 10 years, we have managed extensive industry change, including developing and introducing the NETA arrangements and rolling out the BSC arrangements into the Scottish market in 2005 (BETTA). We are now perfectly placed to help the industry meet the challenges that it faces.