Decision details

To award contracts for the supply of gas and electricity in accordance with Regulation 10 of The Local Authorities (Executive Arrangements) (Meetings and Access to Information) (England) Regulations 2012 (“the Regulations”)

The Leader of the Council, having considered the report and recommendations, RESOLVED to approve:

1.            The award of a contract for the supply of Electricity to the Council via the LASER consortium, for a two-year contract with the option to extend for one further year, worth up to £1,185,000 in total. This will be to the top ranked supplier on the Electricity framework – Npower.

2.            The award of a contract for the supply of Gas to the Council via the LASER consortium, for a two-year contract with the option to extend for one further year, worth up to £1,167,000 in total. This will be to the top ranked supplier on the Gas framework – Total Energies.

3.            To delegate to the Strategic Director of Place, in consultation with the Borough Solicitor, to enter into contractual arrangements on behalf of the Council to implement these decisions.

4.            The Section 151 officer to present a detailed rationale to the Executive of the reasons for this decision being necessary, making it clear why such a large contract was not picked up as part of the ‘business as usual’ management of contracts and to provide a full list of all contracts over £500,000 and their renewal dates to the Executive by October 1st 2024.

5.            A consideration of the net-zero tariff options under this framework (including full costings) to be presented to the Executive by January 31st 2025, in line with the Carbon Neutrality Action Plan objectives.

     I.        The rates secured by LASER have been competitively purchased in the market, reducing the risk of the Council having to make spot purchases at inflated costs (as seen in 2022).

    II.        The alternative of trying to switch energy suppliers is too late at this point to be considered viable without exposing the Council to significant price volatility.

   III.        The Council does not have the necessary resources in energy to procure its own utilities at a competitive price.

      I.        The recommended option: To award two contracts for gas and electricity via the LASER framework to their top ranked suppliers, Npower and Total Energies.

    II.        The alternative: to do nothing and procure energy on the spot market with no certainty as to those future costs, which exposes the Council to risk. The projected energy costs for the year from October for the Council will be £975k (increase of £190k pa) if we rely on spot rates.

None.