Issue - decisions

Energy Contract

08/03/2024 - Energy Contracts

i.  Adopted and approved the Gas & Electricity Risk Management Strategy (Appendix A) as follows:

 

a.  Approved the purchase of electricity on a ‘month ahead’ basis and gas on a ‘day ahead’ basis on the open wholesale energy market price.

b.  Set wholesale energy market price caps for power for the summer 24 period (April 24 to September 24) to £90/MWh and the winter 24 (October 24 to March 25) to £110/MWh.

c.  Set wholesale energy market price caps for gas for the summer 24 period (April 24 to September 24) to £35 MWh and the winter 24 (October 24 to March 25) to £40/MWh.

d.  If the wholesale energy markets price increase such that the cap is expected to be exceeded, or is exceeded, then Cabinet approves the purchase strategy for eEnergy to buy the remaining energy volume in that summer and/or winter period to limit further cost exposure.

 

ii.  Delegated authority to the Executive Director of Regeneration, Housing and Environment, in consultation with the Executive Director of Finance and Commercial (the S151 officer) and the Lead Member (Financial oversight, council assets, procurement, and revenues and benefits) to purchase energy in line with the Gas & Electricity Risk Management Strategy.

 

iii.  Approved the compliant procurement of new energy supply contracts with an estimated contract value between £8m and £11m for the period 25/26, 26/27 and 27/28. The procurement will be based on the most competitive price, supplier performance, bill validation and meter services, and flexibility to amend volume to align with the Estate Strategy. Council officers will be required to report back to Cabinet by 31st December 2024 and seek approval to award new energy contracts for the period 25/26 – 27/28.