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Procurement of the Council’s Electricity and Gas Supplies

14/01/2016 - Procurement of the Council’s Electricity and Gas Supplies

Matter for Decision

The report outlined the different options available to the Council to procure the Council’s energy supplies from 2016.

 

Decisions of the Executive Councillor for Finance and Resources

 

     i.        Agreed Option 5 for the City Council to enter into a “call-off” contract for the purchase of energy supplies under the terms of the Eastern Procurement Purchasing Organisation (ESPO) energy framework and delegate the final choice of tariff to the Director of Customer & Community Services, in consultation with the Executive Councillor and Head of Finance, with priority given to use of Green Energy Tariffs subject to costs being broadly comparable with alternative sources.

    ii.        Agreed a contract period for the provision of electricity for four years with an option to review or change tariff each October, subject to prevailing market conditions and advice from ESPO at the time.

   iii.        Agreed a contract period for the provision of gas for three years with an option to review or change tariff each October, subject to prevailing market conditions and advice from ESPO at the time.

 

Reason for the Decision

As set out in the Officer’s report.

 

Any Alternative Options Considered and Rejected

Not applicable.

 

Scrutiny Considerations

 

The Committee received a report from the Head of Estates and Facilities. The Committee noted the revised recommendation sheet that had been circulated in advance of the meeting (which related to item ii and iii above).

 

The Committee made the following comment in response to the report:

     i.        Questioned what the difference in cost was between green and non-green energy.

 

In response to the Members’ question the Head of Estates and Facilities said the following:

     i.        The difference in cost between green and non-green energy on current usage was approximately £2000.

 

The Committee unanimously resolved to endorse the revised recommendations.

 

The Executive Councillor approved the recommendation.

 

Conflicts of Interest Declared by the Executive Councillor (and any Dispensations Granted):

 

Not applicable.