Information published on 15 July 2014 in the UIC electronic newsletter "UIC eNews" Nr 408.

Czech Republic: Railway Infrastructure Administration (RIA) reduces price of natural gas supplies by 219 000 euros

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The Railway Infrastructure Administration (state organisation, SZDC) has purchased natural gas for its central headquarters, seven regional headquarters (in Prague, Pilsen, Hradec Králové, Ústí nad Labem, Brno, Olomouc and Ostrava), three railway technical centres and other organisational units at the energy exchange, saving millions.

“RIA signed a contract worth almost 26,000 MWh of natural gas and covering the second half of 2014 and the first half of 2015 at the energy market of the Czech Moravian Commodity Exchange in Kladno. Compared to current prices, we have saved 219 000 euros,” said RIA’s General Manager Pavel Surý.

The bulk of the contract consists of supplies of natural gas in the retail customer mode, where RIA has succeeded in achieving a year-on-year price reduction of 26%. The price of natural gas supplied in the wholesale mode has dropped by 16%.

The Railway Infrastructure Administration is an organisation operating, maintaining, upgrading and developing almost 9,500 kilometres of railway tracks. RIA’s objective is to streamline the operations as much as possible, including costs of energy inputs. Insofar as electricity and natural gas are concerned, purchases of energies at the commodity exchange are the most effective form of public procurement.

When buying at the commodity exchange, one can quickly respond to current developments of energy prices and clinch the deal quickly. The deal is valid and effective instantaneously and no one can question it. Moreover, no contract documentation is needed, which reduces the administrative load connected with the supplier’s selection.

(Source: SZDC)