Purpose

Renewal of utility contract through ESPO framework

Decision

Cabinet RESOLVED to:
1. Authorise the award of the Council’s supply of gas under the ESPO framework from 1 April 2027 until 31 March 2031 to Total Energies Gas & Power Limited, with an expected contract value of up to £3.5 million.
2. Authorise the Council to enter into any legal documentation required to give effect to the decision.
3. Delegate authority to the Executive Director of Place and Economy, in consultation with the Executive Director of Corporate Services and Director of Legal and Governance, to authorise any contract variations required, subject to the cumulative value not exceeding £500,000.

Alternative options considered

Option 1: Undertake a full and open procurement exercise:
A full procurement process could be undertaken to secure a new gas supply contract. However, this would require significant officer time and resources, increase procurement costs, and may not achieve greater value for money than the rates available through the ESPO framework. This option could also result in delays to contract award and potential exposure to market price fluctuations

Option 2 Utilise an alternative public sector framework agreement:
Alternative compliant framework agreements were considered. However, the ESPO framework provides a fully compliant route to market, offers competitive pricing, and includes specialist procurement support and energy market expertise. No clear advantages were identified in using an alternative framework.

Option 3: Take no action / allow the current arrangements to continue:
Doing nothing is not considered a viable option. Failure to secure a replacement contract before the expiry of the current arrangement could leave the Council without appropriate contractual arrangements for gas supply, potentially resulting in higher costs, increased operational risk, and noncompliance with procurement regulations.

The recommended option is to directly award the contract through the ESPO framework. This provides a compliant procurement route, secures continuity of gas supply, minimises procurement costs and timescales, and enables the Council to benefit from ESPO's purchasing power and market expertise.