Purpose

To seek approval to extend the existing contract term for the provision of electricity to the Council.

Decision

That the Executive Director of Resources and Partnerships are recommended to:-

a)    Approve an extension to the contract term for the supply of electricity with Npower from 1 April 2027 to 31st March 2028; in accordance with the contract terms that allow extension by up to 2-year periods on 2 occasions beyond the initial 4-year contract period, and the previous approval RED/207/2022, and approve entering into a formal contract variation agreement with NPower for this extended period;

b)    Approve entering into an Agency Agreement with Yorkshire Purchasing Organisation which will remain in situ until 31 March 2028;

c)    Approve that the best way forward following advice from YPO would be to undertake this on a flexible contract basis with the YPO purchasing strategy; and

d)    Authorise the Head of Legal Services to complete the necessary legal documentation.

Alternative options considered

Failure to extend the contract for the provision of electricity would result in the Council reverting to supply of the spot market “deemed rates” at the expiration of the current contract which would likely result in increased costs in comparison to a contracted deal.