1 1

2 2 Agenda  Background and Concept  Sharing the benefits  Current Members  Contract Set Up  Contract Structure & Benefits  What the members are saying  Marketing

3 3 Background & Concept  Collective energy procurement service for UK arts organisations  Founding members: Royal Albert Hall, Royal National Theatre & Royal Opera House  Arts orgs supporting one another  Main objectives:  Provide members with a transparent and mutually beneficial platform to obtain competitively priced energy supply contracts  Deliver savings against the financial plan and the average market  Protect the members’ budgets  Best value for all members  Costs are fairly allocated  Set up as flexible contract – allowing PE to purchase energy directly in the wholesale market  Timing and rules for energy purchases defined & governed by Risk Management Strategy

4 4 Sharing the benefits  Pooling energy together – more attractive to suppliers  Leverage from Multiple brands  Access to wholesale market  Arts basket dedicated support team  Experts handling managing your procurement  Driving down energy costs and building green credentials Transparent reporting  1 st Year savings = 7% below market, Yrs 2 & 3 below market 8%  Contract in place easy to join

5 5 Current Members Founding Members

6 6 Contract Set Up  Half hourly electricity contract set up in April 2012 following competitive tender process  Contract awarded to Scottish & Southern based on:  Lowest price  Fixing of most non-energy charges – only RO, DUoS & TUoS are passed-through, but fixed for 12 months at a time  Attractive contract features, including:  Favourable trading arrangements – full access to wholesale market prices & provision of sell-back facility  Ability to actively manage customer portfolios  Risk Management Strategy is in place and showing the benefits

7 7 Contract Structure & Benefits  36 month flexible contract commencing 01 October 2012 following a competitive tender  Favourable trading arrangements – full access to wholesale market prices & provision of sell-back facility  Customer-specific pricing  Billing in line with simple fixed price contracts – rates set in 12 month intervals  Fully inclusive day/night unit rates  Standing charge  Available capacity charge  100% Renewable Energy supplied at discount on CCL rate  Annual +/- 15% volume tolerance on group level  Ability to re-forecast contract volume at any time  Ability to add & remove sites  Ability to add new customers

8 8 Risk Management Strategy  Risk Management Strategy set up by PE  Agreed with founder members and applied to all basket members  Based on clients objectives and PE view on current and future markets  Setting of budgets for entire contract term  Objectives:  Conservative approach to risk  Protecting customer budgets  Minimising costs  Tactics:  Controlling risk through tiered purchasing  Utilisation of a range of purchasing triggers – stops, trailing stops, targets, time limits

9 9 Scottish & Southern Sustainable Generation

10 10 What the members are saying..... Jessica Hepburn, Executive Director, Lyric Hammersmith ‘ It’s fantastic to be collaborating with our peers to improve our collective sustainability. The Lyric is fully committed to being a leader amongst arts venues who want to reduce their impact on the environment and we are delighted that the Arts Basket has become a major part of our green arsenal’ Sally O'Neill, Director of Finance, Royal Opera House “The Arts Basket is a major opportunity for venues like ours to cut energy costs which are a significant overhead. We want to encourage other arts venues and theatre managers to consider applying to join the Basket.”