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A new contract to supply gas for the whole of Scotland's public sector will save millions of pounds.

The contract, worth around £80 million a year from April 2010, has been awarded to Total Gas and Power (Total GP) after a competitive tender.

The public sector will benefit by around five million pounds a year through flexible bulk buying on the wholesale market. The contract also provides access to energy management measures to improve energy efficiency and cut demand.

Finance Secretary John Swinney said:

"Every pound the public sector spends must represent maximum value for the taxpayer and the way we buy goods and services must make its contribution. This is yet another example of our radical procurement reform programme delivering results.

"Collaborating across public bodies creates efficiencies and we are taking every opportunity to secure the benefits of closer working. Procurement Scotland will buy gas through Total GP on the wholesale market for the whole of the public sector, giving budgeting certainty. The contract also offers access to energy demand measures, such as automated meter reading, to help bodies become more energy efficient, cut emissions - and save money."

Total Gas and Power Director John Shead said:

"We are delighted to have won the contract to supply Scotland's public sector with gas. For some years we have been developing our products and services for the public sector and the award of this contract cements our position as the leading public sector supplier across the UK.

"We are committed to supporting our new Scottish public sector customers with innovative products and services designed to help them optimize their procurement of gas and move towards greater energy efficiency across their estate."

As part of a competitive tendering process under EU procurement rules, suppliers were invited to tender for large and small scale sites across the public sector. Public body sign up to the gas deal will be via an addendum to the agency agreement already in place for electricity.

Scotland has been an important sphere of activity for the Total Group since the first discoveries of North Sea oil and gas. Its Aberdeen-based subsidiary is the fourth largest operator on the UK Continental Shelf, where its portfolio includes the Alwyn area and Elgin/Franklin fields. Total also operates the St. Fergus gas receiving terminal, which processes some 20 per cent of all the UK's gas. Total has 850 employees in Scotland. Total GP supplies gas, power and associated services to over 55,000 sites across the industrial and commercial market sectors in the UK.

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