Issue - decisions

The Council’s current contract for electricity supply ends on 30 September 2024. A new supply contract is required to ensured continued supply at best possible rates.

Decision of the Executive Councillor for Finance, Resources and Transformation and Non-Statutory Deputy Leader:

·       Approve continuing to purchase electricity via the Eastern Shires Purchasing Organisation (ESPO) energy framework.

·       Recommend the next contract period for the provision of electricity should run for four years from 1st October 2024 to 30th September 2028. Cambridge City Council may terminate this agreement by providing at least twelve months’ notice, prior to the anniversary date of 1 October each year, following the initial 2-year period.

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

Reason for the Decision

As set out in the Officer’s report.

Any Alternative Options Considered and Rejected

Not applicable.

Scrutiny Considerations

The Contract and Procurement Manager introduced the report.

The Contract and Procurement Manager said the following in response to Members’ questions:

       i.          The term of the contract was fixed but the price may fluctuate in accordance with the frameworks terms and conditions.

      ii.          Using the buying power of the ESPO to try and reduce the volatility of inflation the current heating supply market.

    iii.          The Council were locked into the dates that are set by ESPO. They have the buying power to get the best possible price.

    iv.          The Council could go through an independent broker however the Council does not have the necessary expertise to get the best price and negotiate through a broker.

     v.          If the Council did nothing now it would not stop us from participating with the framework. As whether we could extend the existing contract, the Contract and Procurement Manager would need to look into this as he was not party to the conversations with the Asset Manager and ESPO.

    vi.          Confirmed that the Council will be using 100% renewable sources.

  vii.          Confirmed that the contract could be terminated after two years, with a twelve month notice.

The scrutiny committee unanimously supported the recommendations.

The Executive Councillor for Finance, Resources and Transformation and Non-Statutory Deputy Leader approved the recommendations.

Conflicts of interest declared by the Executive Councillor (and any dispensation granted)

No conflicts of interest were declared by the Executive Councillor.