Decision details

To seek approval to adopt an energy purchasing strategy to seek to limit the Council’s exposure to further energy price increases.

i. Adopted the following purchase strategy:

a.  Approved the purchase of 50% of the ‘23/24’ energy volume for Summer 23 and Winter 23.

b.  Approved the purchase of the remaining energy volume if the wholesale price for that forward period falls below £150/MWh (power) and 150p/therm (gas), the floor price and where feasible well below the floor price.

c.  Approved the default position to purchase energy volume (power) on a month ahead, and gas on a day ahead (spot price) should wholesale prices for forward period remain above £150/MWh (power) and 150p/therm (gas).

d.  Set a wholesale energy market price cap for the month ahead and Winter 23 of £250/MWh (power) and 300p/therm (gas) and if markets increase such that the cap is expected to be exceeded, or is exceeded, then Cabinet approves the purchase of the remaining energy volume for 23/24 to limit further cost exposure.

ii. Delegated authority to the Executive Director of Place & Communities, in consultation with the Executive Director of Finance and Commercial (the S151 officer) and the Lead Members (Finance Oversight & Assets and Customer Services, Procurement & Performance) to purchase energy in line with the above guidelines.

iii. Required officers to report back to Cabinet by February 2024 on the current state of energy markets and any proposed changes to purchasing strategy of future energy volume in the final year of the flex energy contracts 24/25.