Issue details

Purchase of Council Energy Contracts for Housing HH and Gas Supply contracts for a period of 1 year (1st April 2024 – 31st March 2025)

A meeting with our energy brokers took place on Thursday 7th March to discuss and evaluate the tender summer reports for our HH and Gas supply contracts for our housing assets.

The meeting was attended by James Rant, Strategic Bid Director (eEnergy), Jason Newman (Group Manager, Carbon & Sustainability), Pat Hayes (Executive Director, Regeneration, Housing and Environment), Neil Euesden (Director Housing) and Carol Maduka (Strategic Finance Manager, Regeneration, Housing and Environment).

DPS Tender

A tender was issued through accessing the Dynamic Purchasing System (DPS) established by Gwynedd Council for the procurement of electricity and gas and award call-off contracts under the DPS.

HH Supply Contract

Our current energy supply contract is with Centrica Corp and will expire on 31st March 2024. Centrica have declined to retender for this contract.
Shell Energy were the only supplier willing to offer a contract for the HH Supplies. Suppliers are still very selective in where they bid, this is particularly the case with Housing Associations and or Housing Stock, largely due to credit and payment issues being prevalent in this area.
While Shell is the only supplier bidding for the renewal of the two HH supplies, there is still a 14.9% reduction against the current contract prices which equates to saving of £4,578 for the same level of consumption in 24/25.

The energy contract is for two sites, 1-29 Pendeen Court, Tamarisk Way, and 1-30 Brook House, Spackmans Way.

The decision is to enter an HH energy contract with Shell Energy for the period 1st April 2024 – 31st March 2025 to achieve best value.

Gas Supply Contract

Our current gas supply contract is with Corona Energy and will expire on 31st March 2024. Corona Energy have not retendered for the contract.
Three compliant tenders were received from Shell Energy, SEFE Energy and EDF Energy for our gas supply contracts.

EDF energy is the recommended supplier for our gas contracts supply our 12 housing sites in Slough for 12 months starting on 1st April 2024. EDF are offering a 41.7% reduction against the current contract price with Corona Energy and this equates to a saving of £91,589 for the same level of consumption in 24/25.

It should be noted that EDF Energy credit check at the point of signature, eEnergy have requested the contracts to be raised so that we can gain some visibility of any issues signing with EDF as soon as possible.

The decision is to enter a gas energy contract with EDF Energy for the period 1st April 2024 – 31st March 2025 to achieve best value, operational continuity and avoid onboarding issues and costs with a new supplier.

Decision type: Non-key

Decision status: Recommendations Approved

Notice of proposed decision first published: 28/03/2024

Decision due: 21 Mar 2024 by Executive Director - Regeneration, Housing and Environment

Contact: Nicholas Pontone, Principal Democratic Services Officer Email: Tel: 01753 875120.