SSE Greater Gabbard Offshore Wind Farm Supply Chain Engagement

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1 SSE Greater Gabbard Offshore Wind Farm Supply Chain Engagement

2 Programme Introduction to SSE Overview of Tenders Overview of supplier requirements to work for SSE Overview of Procurement Process

3 SSE 32nd largest company in the FTSE 100* 11.9bn market capitalisation* 20,250 employees UK s broadest-based energy company Electricity generation, transmission, distribution, supply and services Gas production, storage, distribution, supply and services Telecoms networks and data storage Ireland s fastest-growing energy company Electricity generation Electricity and gas supply Street lighting maintenance * As at 2 September 2011

4 Our purpose Our purpose: to provide people with the energy they need in a reliable and sustainable way. Our strategy: to deliver sustained real growth in the dividend payable to shareholders through the efficient operation of, and investment in, a balanced range of market-based and economically-regulated businesses in energy production, storage, distribution, supply and related services, mainly in the UK and Ireland. Our values: Safety, Service, Efficiency, Sustainability, Excellence, Teamwork.

5 SSE s business activities Market-based and economically regulated

6 Generation (1) 11,290MW of electricity generation capacity* in total (UK and Ireland) Most diversity in fuel sources among UK generators 2,450MW of capacity for generating electricity from renewable sources 4,370MW of coal-fired capacity with biomass co-firing capability 4,470MW of gas- and oil-fired capacity, including share of Marchwood, one of the UK s most efficient gas-fired power stations. * Including share of joint ventures

7 Generation (2) Investing over 4bn in new electricity generation projects, including: One of the world s biggest offshore wind farms (Greater Gabbard) One of the UK s largest onshore wind farms (Clyde) New gas-fired power station (Abernedd) Generally own and operate the assets. Joint Venture Partners with RWE, Dong and in Forewind Consortium.

8 Beatrice Firth of Forth Gabbard Galloper Hunterston Islay Walney

9 Greater Gabbard 140 Siemens 3.6 MW Wind Turbines with 5 year Service and Warranty agreement with Siemens Wind Power. 140 Foundations and transition pieces that include HV plant, HVAC and LV / Fire panels. 2 Offshore sub-station platforms designed by Siemens and built in UK. 3 x 45 km export cables connect to onshore sub-station at Leiston. Operations and control centre based at Fish-market in Lowestoft.

10 Overview of O&M Support Contracts

11 O&M Support Contracts. General Support Confined Space Support Mechanical Support Scaffolding Support Controls and Instrumentation Cladding Support OEM Support Siemens Wind Siemens T&D Areva ABB Specialist Support Work Boat Charters Survey Support Avian Studies

12 Overview of Supplier Requirements

13 Overview of Supplier Requirements (1) Suppliers who are interested in providing goods or services to SSE need to register with the Achilles Utilities Vendor Database (UVDB). Suppliers who complete the online UVDB questionnaire have the opportunity to pre-qualify for work with us. Where suppliers provide services deemed to be high risk (eg working offshore), they will need to submit to the Achilles Verify process, to demonstrate compliance with health, safety, environment and quality requirements. Registering with Achilles, this does not guarantee we will invite you to quote for, or award you any business. If you have any queries about becoming a supplier to SSE, please send an to

14

15 Current SSE Process

16 The route to become a supplier

17 Achilles The Background Who are they? An online data management company Geared towards a number of industries including Utilities Current Statistics 55,000 suppliers 7,000 buyers 22 countries Why do we use them? Predominately to satisfy EU procurement regulations Over the past 10 years, the system has become sophisticated and introduced different products Pre-qualification including financial, legal questions Health, Safety, Environment & Quality assessments CEMARS (Certified Emissions Measurement & Reduction Scheme) Procurement currently use the following products: UVDB, Verify, Themis & CEMARS to help determine a tender list Supplier status checks e.g. Equifax scores, legal status, SHEQ status and assessment scores

18 Approved vendors have access to the wider business

19 Overview of Supplier Requirements (3) Minimum Training Requirements for working team members offshore (Seller responsibility) RUK Recognised Working at Height Training Offshore Survival Training RUK MST or PST Emergency First Aid + minimum of 1 qualified First Aider in Working Party. SSE Provided Training Offshore Induction Step Off Training

20 Overview of Procurement Process

21 Overview of Procurement Process Tender List Selection Issue of Invitation to Tender (ITT) Tender Returns Tender Assessment Contract Award

22 Overview of Procurement Process Timescales 3 Week Tender Period 2 Week Tender Assessment 1 Week to Concluded Contract with Preferred Bidder

23 Thanks for listening

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