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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.