Under the new contract, Entelios will supply electricity to more than 13,000 facilities, including all Telenor’s cellular base stations and office buildings throughout Norway. This represents one of the most complex take-overs on the Norwegian energy market.
The agreement, covering both electricity and energy services, has an annual consumption volume of more than 400 GWh and an annual sales value of approximately NOK 400 million.
To date, Telenor has been an independent actor on the power market, but with the new contract, Entelios achieves a smooth take-over of the portfolio, enabled by the introduction of Elhub earlier this year. Entelios will develop a customised delivery and invoicing system comprising electricity, network tariffs and district heating. These elements will be utilised to optimise costs – one of the services to be provided by Entelios.
Telenor also has the option to enter into financial power agreements and to make use of the consumption flexibility market via options in the contract with Entelios. Entelios is currently one of the first businesses with the capacity to exploit consumption flexibility on the market.
“This new contract allows us to exploit our specialised expertise for one of Norway's decidedly most advanced customers. We view the new contract and the position of trust it represents as affirmation of the quality of our deliveries,” says Atle Knudsen, CEO of Entelios. He is not afraid to admit that Telenor is a prestigious customer for the company.
“It has taken us five years to land this contract, and every part of the organisation has worked hard to provide the absolute best of our expertise and experience from the industry when offering our services. It’s now full steam ahead with work on the contract,” he concludes.
“It has been important for us to feel confident that the take-over of the facilities can be implemented smoothly,” says Per Ulvin, Senior Sourcing Advisor at Telenor and the person responsible for the procurement. “We have therefore involved several in-house resources in addition to external consultants throughout the process. Entelios has carried out similar processes before, and this made us feel more confident. For us, it is important that a supplier is able to deliver in all the areas we need, and that they introduce new measures that can help us reduce our energy costs. After a total evaluation, Entelios was the best supplier among the competitors.”
The delivery contract starts on 1 January 2020.