Agenda item

(a)  That the report and the financial impacts of procuring energy contracts for the Council be noted.

(b)  That the corporate energy procurement strategy over the next three years be approved.

(c)  That delegate authority be given to the Executive Director of Place and Community to;

  i.  access the DPS (Dynamic Purchasing System) established by Gwynedd Council for the procurement of electricity and gas and award call-off contracts under the said DPS; and

  ii.  to enter into a consultancy agreement with Beond to facilitate the management of energy contracts under the DPS as required by the access agreement to that DPS.

(d)  That the centralisation of the management of the corporate energy contract, meter commissioning and meter decommissioning across Council assets to the Asset Contract Management Team to improve contract management and reduce costs be approved.

(e)  That a report be taken to the Council's internal finance board in March 2022 for a discussion on the overall arrangements for energy procurement. 

The Group Manager Asset Management introduced a report on the procurement of the Council’s corporate energy supply contracts.

It was noted that energy costs were risen sharply and a strategy was proposed in the report to seek to mitigate the financial impacts by adopting a flexible and dynamic approach to procurement.  If no action was taken an additional revenue pressure of more than £3m would develop and the actions proposed would partially mitigate this risk.  The energy procurement strategy would also be aligned to the Asset Disposal Plan to maximise cost avoidance and further reduce the financial pressures over the next three years.

Lead Members welcomed the approach being proposed.  The use of green energy was discussed and it was agreed this was a consideration as part of the Council’s wider policy agenda.  The Cabinet also encouraged Officers to be imaginative about the ways to reduce energy consumption in the future, for example though solar powered street lights in future. 

The Cabinet approved the recommendations.  There were a number of operational issues to resolve in the way the strategy would be implemented and it was therefore agreed that a report be taken to the Council's internal finance board in March 2022 for a discussion on the overall arrangements for energy procurement. 

Resolved –

(a)  That the report and the financial impacts of procuring energy contracts for the Council be noted.

(b)  That the corporate energy procurement strategy over the next three years be approved.

(c)  That delegate authority be given to the Executive Director of Place and Community to;

  i.  access the DPS (Dynamic Purchasing System) established by Gwynedd Council for the procurement of electricity and gas and award call-off contracts under the said DPS; and

  ii.  to enter into a consultancy agreement with Beond to facilitate the management of energy contracts under the DPS as required by the access agreement to that DPS.

(d)  That the centralisation of the management of the corporate energy contract, meter commissioning and meter decommissioning across Council assets to the Asset Contract Management Team to improve contract management and reduce costs be approved.

(e)  That a report be taken to the Council's internal finance board in March 2022 for a discussion on the overall arrangements for energy procurement.