Issue - meetings

To receive a report from the Corporate Manager for Finance, Property and Climate Change providing an overview of options available to the Council for the supply of Gas and Electricity.

The Cabinet had before it a report * from the Corporate Manager for Finance, Property and Climate Change providing an overview of options available to the Council for the supply of Gas and Electricity.

The contents of the report were briefly outlined by the Cabinet Member for Finance who made reference to the need for a swift decision since a decision well in advance of the contract end (30 September 2024) would enable the Council to secure timely access to aggregated volumes and related benefits.

Consideration was given to:

·       LASER Energy were part of Kent County Council, a specialist trading arm dedicated to delivering gas, electricity and other utility value-added services for the public sector. They were an established Public Buying Organisation (PBO) set up for this very purpose and recognised nationally. It was one of the largest energy buying organisations in Europe, purchasing over £500m of energy per annum and serving over 200 public sector customers. There was a small risk in using them but they were recognised as outstanding in what they did.

·       Steps could be taken to ensure the provider were ethically and socially viable via the procurement process. There had already been a lot of due diligence undertaken regarding this company.

·       Reassurance was provided that ‘call off contracts’ were able to be provided if necessary.

·       The energy ‘chain of custody’ would be maintained.

RESOLVED that:

a)    Delegated authority be given to the Cabinet Member for Finance - in consultation with the Corporate Manager for Finance, Property and Climate Change - to contract with the LASER Energy to procure, manage and supply the Council’s gas and electricity between 01 October 2024 and 30 September 2028 (four years); and

b)    Delegated authority be given to the Cabinet Member for Finance - in consultation with the Corporate Manager for Finance, Property and Climate Change - to continue with the current ‘purchase in advance’ gas and electricity purchasing model managed by LASER but also to utilise other available LASER Framework options such as the ‘purchase within period’ basket if there is a sound business case for doing so; and

c)     To continue to participate in the Devon Energy Group; and

d)    The Council moves towards a 100% renewable tariff for electricity consumption at its main operational facilities from sources such as via the LASER ‘green basket’ or certificate-backed renewable electricity, in order to seek to achieve 100% within the next 2 years.

(Proposed by Cllr J Buczkowski and seconded by Cllr N Bradshaw)

Reason for the decision

The Council’s current contract period with LASER Energy (LASER) for the supply of gas and electricity ends 30 September 2024. The Council needed to consider the procurement options and next steps, and a decision needed to be made. This varied from undertaking a full procurement process to a direct award to one of the Public Buying Organisations (PBO).

The Council gains economies of scale (added discount) by participating in the Devon Energy Group with other Devon authorities. The collective is coordinated by Devon  ...  view the full minutes text for item 18