Contract Award - CPG/12792/2025 - Provision of Natural Gas for the British Embassy in Washington

The Washington DC area is serviced by only one distributor of natural gas, a company called Washington

Gas. The market requires the use of a broker who is able to negotiate rates that we would otherwise not

be privy to. They control and monitor our usage advising the Embassy when to switch to alternative

energy to maximize savings and avoid fines charged by the government.

In order to ensure this Direct Award is in compliance with FCDO's policy and offers VfM, the Regional

Procurement Hub (RPH) carried out a research in 2019 to understand how the market works and

compare rates and options available. The RPH approached a list of a gas companies, the findings

showed some suppliers were only brokers and others were actual gas companies but did not serve our

area. As part of the reassessment process, the market was reviewed again in 2022 and 2025, and no

substantial changes were identified. Therefore, the continued use of the current supplier remains the

most viable and cost-effective option.

In this business, the services of a broker is essential as they provide services such as: weekly energy

updates including new legislation or change in law with impact cost analysis, review invoices and billing

resolutions, hedge strategies that minimize risk during periods of weak market fundamentals or major

event disruption, observes the market to find peaks and lows on rates and recommends contract renewal

according to predictions. The services of the broker are provided at no cost to the Embassy.

Beyond the services previously described, the Embassy's choice to partner with Open Market Energy is

largely driven by the broker's designation as a Certified Energy Procurement Professional. This

qualification sets OME apart from standard brokers by confirming its proven expertise in navigating

energy markets, adhering to regulatory standards, and executing strategic procurement. Given the

sector's volatility and regulatory complexity, collaborating with a certified expert offers confidence that

procurement decisions are well-informed, justifiable, and aligned with industry best practices.

OME works in partnership with WGL Energy Services and is compensated directly by the Supplier, Open

Market Energy, under a Channel Partnership Agreement. This arrangement—standard in the industry—

allows the broker to earn a margin from the negotiated energy rate, with no direct cost to the Embassy.

All payments are managed by WGL Energy Services, ensuring transparency and efficient procurement.