Issue - decisions

Procurement of electricity supply contract 2020

Decision of:

Councillor Robertson, Executive Councillor for  Strategy and Resources

Reference:

20/URGENCY/SR/14

Date of decision:             

13/8/2020

Published on:  13/8/2020

Decision Type:

Key Decision

Matter for Decision:

Approval to procure the Council’s electricity supply contract via an ESPO framework contract. 

Why the decision had to be made (and any alternative options):

There is a requirement to re-procure the Council’s electricity supply contract from 1^st of October 2020. Spending on electricity is around £780,000 per year (estimated £3.1m over the life of the contract) so this is a key decision requiring approval from the Executive Councillor.

Energy prices fluctuate and have been impacted by the coronavirus outbreak.  ESPO report prices are currently at a low level.  It is likely, although not certain, that electricity prices will increase this year.  It is therefore recommended that this procurement decision is made as an out of cycle decision rather than wait until strategy and Resources Scrutiny Committee on 5^th October 2020. 

The Executive Councillor’s decision(s):

      i.         Approved the purchase of electricity via the Eastern Shires Purchasing Organisation (ESPO) energy framework as outlined in option 3 of the briefing note.

    ii.         Approved the contract period for the provision of electricity should run for four years from the 1st October 2020 to the 30^th September 2024.

   iii.         Authorised the Strategic Director or Head of Housing Maintenance and Assets to approve the actual electricity price tariff when the procurement is completed by ESPO.

Reasons for the decision:

As detailed in the Officer’s briefing note.

Scrutiny consideration:

The Chair and Spokesperson of Strategy and Resources Scrutiny Committee were consulted prior to the action being authorised.

Report:

Link to Officer briefing paper

Conflicts of interest:

None

Comments:

The Opposition Spokes Councillor queried how the ESPO contract performance was monitored, if other frameworks had been considered and how long it would take these providers to provide an assessment.

The Officer responded that the new corporate Energy Manager post in the Estates and Facilities team will carry out a review of procurement options for energy but this will not be until the  start of 2021.  The review will include looking at alternative procurement frameworks and benchmarking prices.