What is a utilities dynamic market?
A utilities dynamic market is a dynamic market established by a utility for the award of utilities contracts, for example in water, energy or transport. It follows the same openness rules as any other dynamic market, but two things differ: a utility may charge suppliers fees to join and fees connected to contracts awarded, and it may run a competition among its members rather than publishing a tender notice to the whole market.
Utilities dynamic market, explained
Utilities are bodies that carry out a utility activity, broadly in the water, energy and transport sectors. Under the Procurement Act 2023, in force from 24 February 2025, the qualification systems that utilities used under the previous regime were replaced by utilities dynamic markets. A utilities dynamic market is established by a utility and is used for awarding utilities contracts, so it is a specific type of dynamic market rather than a separate mechanism.
The core openness rules are the same as for any dynamic market. It must stay permanently open to new applicants for as long as it runs, membership cannot be capped, applications to join must be assessed within a reasonable time, and an application still pending must be considered before a competition run under the market concludes. Suppliers qualify once against the conditions for membership and can then be invited to compete for contracts in the relevant category.
Two rules set utilities apart. First, fees: a utility may charge suppliers for membership of a utilities dynamic market and may charge a fee in connection with contracts awarded under it, whereas a general contracting authority may not charge suppliers a membership fee. Second, advertising: because the market itself was openly advertised, a utility may run a competition among the members of its utilities dynamic market instead of publishing a tender notice for that particular contract. Suppliers therefore need to be in the market to see the work.
Key things to know
Run by a utility
It is established by a utility, broadly in water, energy or transport, and used for awarding utilities contracts.
Replaced qualification systems
The Procurement Act 2023 replaced the utilities qualification systems of the previous regime with utilities dynamic markets.
Still permanently open
Membership cannot be capped, and applications must be assessed within a reasonable time, as with any dynamic market.
Fees are permitted
A utility may charge suppliers for membership and may charge a fee connected to contracts awarded under the market.
Member only tenders
A utility may run a competition among members instead of publishing a tender notice for that individual contract.
General authorities differ
A general contracting authority may not charge suppliers a membership fee, so the rules turn on who runs the market.
Explore: What is a dynamic market?, What is a contracting authority?, What is a framework agreement?, Dynamic Markets service.
How eSourcingData helps
eSourcingData helps utilities and their partners design, launch and operate utilities dynamic markets, including the fee and notification rules that apply only to them.
Set up the market
Define categories, conditions for membership and any permitted fees, with the reasoning recorded.
Keep it open
Process applications continuously so the market never closes and pending applicants are not overlooked.
Run member competitions
Invite the relevant members and evaluate against published criteria with a full audit trail.
Sector experience
Our team works on utilities style categories, including civils and repeat works programmes.
FAQs
What is a utilities dynamic market?
A utilities dynamic market is a dynamic market established by a utility, broadly in water, energy or transport, for the award of utilities contracts. It must stay permanently open to new applicants like any dynamic market, but the utility may charge membership and award fees and may run competitions among members rather than publishing a tender notice for each contract.
How is it different from an ordinary dynamic market?
The openness rules are the same: permanently open, no cap on membership, applications assessed within a reasonable time. The differences are fees and advertising. A utility may charge suppliers to join and may charge a fee connected to awards, and it may run a member only competition instead of publishing a tender notice for that contract.
Can utilities charge suppliers to join?
Yes. Under the Procurement Act 2023 a utility may charge suppliers a fee for membership of a utilities dynamic market and may charge a fee in connection with contracts awarded under it. General contracting authorities may not charge suppliers a membership fee for their dynamic markets.
What replaced utilities qualification systems?
Utilities dynamic markets replaced them. When the Procurement Act 2023 came into force on 24 February 2025, it replaced the Dynamic Purchasing System with the dynamic market and replaced utilities qualification systems with utilities dynamic markets.
Why should a supplier join a utilities dynamic market?
Because a utility may invite only its members to compete for a contract instead of publishing a tender notice for it. A supplier outside the market may never see that opportunity advertised, so joining and staying qualified is how you get sight of the work in that category.
Procurement Act 2023 · Dynamic Markets
Utilities dynamic markets, designed, launched and operated for you
A permanently open, pre-qualified supplier market for your repeat categories, we design it, fill it with qualified suppliers, and run the applications, competitions and reporting month after month.
Launch a utilities dynamic market
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