DONG Energy wins supply agreement for approximately 200 Danish housing associations

New procurement portal collects price agreements on goods and services for the social housing sector.

In future, it will be easy for housing associations to find attractive prices in their local area. 350 suppliers from all over Denmark have made their bids for approximately 700 large and minor tasks within contract work, workman services and electricity on the new joint procurement portal, AlmenIndkøb. The portal is targeted at Denmark's social housing sector, and half of the social housing sector in Denmark has already signed up.

DONG Energy will be the sole supplier of electricity, energy consultancy services and the RECS certificates which can be bought by residents who want documentation for having reserved wind power corresponding to their consumption.

Lars Møller-Jørgensen, Head of Public Accounts, said:

"I'm very pleased to see that we had the most attractive offer for the social housing associations signing up for the new procurement portal. DONG Energy offers a host of possibilities - flexible prices which follow the development in the market hour by hour and fixed prices for those who want to know their price for a longer period of time can."

DONG Energy will also supply energy consultancy services, including screening of potential savings and implementation of specific initiatives.

Lars Møller-Jørgensen continued:

"It's a key element in our strategy that every year, we help our customers save hundreds of millions of kilowatt hours, so we're looking very much forward to strengthening our efforts within the social housing sector. We will ensure that housing associations get an educated decision and an effective process. We will also offer energylabelling and energy courses."

Every year, the social housing sector purchases goods and services for DKK 15 billion, and the Danish housing association 'Lejerbo' which was one of the pioneers behind the procurement cooperation initiative in 2011 expects that cost savings may be as high as DKK 1.5 billion.

Palle Adamsen, Managing Director of Lejerbo, said:

"AlmenIndkøb is an ambitious project which requires the active participation of both the registered housing organisations and the many suppliers.  It is dependent on a completely new mindset in the sector and by the business partners. We hope that everybody is ready for this development which is of benefit to the tenants."

Carsten Hansen, the Danish Minister for Housing, Urban and Rural Affairs, officially launch the portal with the first purchase on Monday 23 June at 15.30 at the premises of Lejerbo on Gl. Køgelandevej 26 in Valby.

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