Purpose

The Council’s current
arrangements relating to the supply of gas are via a framework
consortium managed by Yorkshire Purchasing Organisation (YPO). The
current Gas Supply contract expires in March 2025 and due to this
the potential options available in terms of gas supply have been
explored and assessed.  When deciding on
how to proceed with the gas supply contract, consideration has been
given to several factors including contract cost, gas purchasing
strategy, confidence/assurance of the organisation, assurance of
supply, contract term/length as well as potential transitional
costs and implications associated with any move away from the
incumbent provider.
 
Due to the ongoing,
significantly high costs for gas and therefore the contract value
and level of financial risk to the Council, the decision required a
high-level strategic decision over signing the new Gas Supply
contract and the future procurement of energy. Utility contracts
are considered as day-to-day expenditure in the Council’s
constitution, where the expenditure could reasonably be regarded as
having been in the contemplation of members when the revenue budget
was approved. Therefore, the Strategic Director for Corporate
Strategy, Commissioning & Public Health can make the decision
on how to proceed under delegated powers, in consultation with the
Service Director for Finance (S151 Officer) and Portfolio
Holders.  The decision required was
whether to:
 
·  
Remain with YPO and sign the new YPO Gas contract
with their new gas supplier (yet to be
confirmed/appointed).
·  
Move Gas supply arrangements to another public
purchasing organisation and sign up to their Gas Supply framework.
Out of the viable other framework providers Crown Commercial
Service (CCS) is considered as the best option.
 
At a meeting held on
9th February 2024, the options available were presented
to the Strategic Director for Corporate Strategy, Commissioning
& Public Health and the Service Director for Finance, along
with:
·      
Service
Director for Legal, Governance and Commissioning
·      
Head of
Risk
·      
Head of
Procurement
 
All senior officers present
at the meeting gave their full support for the decision to move
away from YPO and to enter into an agreement with CCS, using the
Locked 12 (L12) basket.
 
It was noted that a
retrospective cabinet note would not be required, but that this
could be reported to Finance.
 
It was suggested that once
the Council has signed with CCS, at the appropriate time there can
be a review of the two baskets for gas and electricity supply
together.
 
The Strategic Director
Corporate Strategy, Commissioning & Public Health agreed on the approach presented in the meeting and concluded
with the decision to move to the CCS Gas Supply Framework using the
Locked 12 (L12) basket.
 
At a meeting held on
21st February 2024, the following Portfolio Holders were
briefed about the options which were available:
·      
Cabinet Member – Finance &
Regeneration
·      
Cabinet Member – Corporate
·      
Cabinet Member – Culture & Greener
Kirklees Council
 
The Portfolio Holders gave
their support to the decision to proceed with the move to the CCS
Gas Supply Framework using the Locked 12 (L12) basket.

Content

1.            
To procure
the Council’s gas supply contract via a call off from the CCS
framework, an established central purchasing body.
 
2.       To
enter into a contract for the
Council’s gas supply from April 2025 with the CCS energy
supplier Total Energies.
 
3.       To
liaise and advise partners e.g. Schools and Colleges, of the
decision of the Council and provide them with the option to join us
in our strategic Gas Contract via existing arrangements or
not.