Content

Salford City Council – Record of
Decision
 
I Paul Dennett, City Mayor, in exercise of the powers contained within the
Council Constitution
do hereby approve:
 
·     
the award of a 24-month Contract for Non-Half Hourly
(NHH) electricity supply to Drax Energy Solutions Limited,as
detailed in the table below:
 

Detail required

Answers

Title/Description of Contracted
Service/Supply/Project

NHH
contract for the supply of electricity

Name of Successful
Contractor

Drax Energy
Solutions Ltd

Supplier Registration Number

(to be supplied by Corporate
Procurement)

05893966

Type of organisation

(to be supplied by Corporate
Procurement)

Public Limited Company

Status of Organisation

(to be supplied by Corporate
Procurement)

Non-SME

Contract Value (£)

£1,070,824 Per annum (estimated
average)

Contract Duration

24 months

Contract Start Date

01/04/2024

Contract End Date

31/03/2026

Optional Extension Period 1

12 months

Optional Extension Period 2

months

Who will approve each Extension
Period?

Procurement Board (extension >
£150k)

Contact Officer (Name &
number)

Majid Maqbool

Lead Service Group

Place

How the contract was procured?

(to be supplied by
procurement)

Framework

Framework Details (where
applicable)

(procurement body, framework reference
& title, start/ end date

TC970 – Supply of electricity and electricity
related services

Funding Source

Revenue Budget

Ethical Contractor (EC): Mayor’s
Employment Charter

 

EC: Committed to sign Charter

 

EC: Accredited Living Wage
Employer

 
The Reasons are:
·     
Following the procurement of NHH electricity supply
contract via a fully compliant Manchester Framework, prices were
obtained from the direct award supplier, Drax Energy Solutions for
12 and 24-month contract durations. The 24-month contract will
result in a cost of £1,070,824 per annum. This amounts to an
increase in annual costs of £457,473 (75%).
·     
Options considered and rejected were a 12-month contract duration which would have
seen an increase of 63%, but with the cost differential only being
7% for the second year, this is considered as a relatively small
margin in present energy market conditions when factoring in the
potential risk to price increases together with
inflation.
·     
The 24-month contract therefore provides budget
certainty for the next 2 years, thereby easing budget pressures and
offering protection from any short term price fluctuations arising
from any geopolitical events.
 
Assessment of Risk: Low.
 
The source of funding
is: General fund revenue budget
and school budgets.
 
Legal Advice obtained from: Tony Hatton, Principal
Solicitor.
 
Financial Advice
obtained from: Grace
Rogerson, Senior Accountant.
 
Procurement Advice obtained
from: Heather Stanton, Category Manager.
 
HR Advice obtained:
N/A.
 
Climate Change Implications
obtained from: Majid Maqbool, Energy Manager.
 
Contact Officer: Majid Maqbool
Telephone number: 0161 607 6987
 
The appropriate Scrutiny
Committee to call-in the decision is the Growth and Prosperity
Panel and overview Scrutiny Panel
 
 

Signed:    Paul Dennett
                 
Dated:   27 March
2024.
           
      City
Mayor
 

FOR DEMOCRATIC SERVICES USE
ONLY
 
*          
This decision was published on 8
April 2024
*          
This decision will come in force at 4.00 p.m. on 15 April 2024
unless it is called-in in
accordance with the Decision Making Process Rules.