Purpose

B&D Energy will be moving
their supplies to a PWP (purchase within period) basket from
October 2026 in order to transition to an April PIA (purchase in
advance) basket for gas and an April PC (price certainty) for
electricity from April 2027.  To
facilitate this, B&D Energy will need to enter into their own
contract directly with LASER.
 
LASER are requesting written
confirmation from the Council that they will underwrite any
potential B&D Energy debt, as B&D Energy require a fully
managed service from LASER.  Therefore,
Cabinet will be asked to agree that the Council shall act as
guarantor for any potential debt liability.

Content

Cabinet resolved to:
 
(i)  Note B&D
Energy’s transition from the Council’s Corporate Energy
Contract to a standalone LASER contract, supporting improved tariff
alignment, financial planning and operational predictability for
the subsidiary, comprising of:
 
· 
a temporary Purchase Within Period basket from 1 October 2026 to 31
March 2027, and
· 
an April Purchase in Advance basket from 1 April 2027 to 31 March
2029.
 
(ii)  Approve the
Council’s role in underwriting the financial liability
associated with B&D Energy’s standalone LASER energy
contract, noting that it would formalise an existing contractual
exposure and not increase the Council’s financial
risk;
 
(iii)  Authorise the Strategic
Director, Inclusive Growth and Place, in consultation with the
Strategic Director, Resources, and the Head of Legal, to finalise
and enter into:
 
a) 
a written agreement with LASER confirming the Council’s
underwriting commitment;
b) 
a separate agreement with B&D Energy setting out conditions for
payment discipline, reporting obligations, and escalation
protocols; and
c) 
any other agreements in accordance with the strategy set out in the
report.
 
(iv)  Note that B&D Energy
shall continue to be invoiced directly by LASER, with all costs
funded from its own budgets, and that the Council shall monitor
payment conduct monthly and report quarterly to the Shareholder
Panel.