Decision

Salford City Council – Record of Decision

I Paul Dennett, City Mayor, accept the recommendation of the Procurement Board and in exercise of the powers contained within the Council Constitution do hereby:

• approve to Award energy supply contract for over 100KW electricity supply, as detailed in the table below:

Detail required

Answers

Title/Description of Contracted Service/Supply/Project

Over 100KW electricity supply contract

Procurement Reference numbers (DN and CR number supplied by Procurement)

S1051

Name of Successful Contractor

Drax Energy Solutions Ltd

Supplier Registration Number

(to be supplied by Procurement

05893966

Proclass Classification No.

(to be completed by procurement)

371000

Type of organisation

(to be supplied by Procurement)

Public Limited Company

Status of Organisation

(to be supplied by Procurement)

Non-SME

Contract Value (£)

£3,938,456 per annum

Total contract value £ (including extensions)

£7,876,912 total project value

Contract Duration

24 months

Contract Start Date

01/10/2026

Contract End Date

30/09/2028

Optional Extension Period 1

0 months

Optional Extension Period 2

0 months

Who will approve each Extension Period?

Procurement Board (extension > £150k)

Contact Officer (Name & number)

Lead Service Group

Place

How the contract was procured?

(to be supplied by procurement)

Direct Award/ Call off

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

Choose an item.

EC: Committed to sign The Mayor’s Employment Charter

N/A

EC: Committed to the principles outlined in the Mayor’s Employment charter

Yes

EC: Accredited Living Wage Employer

No

EC: Committed to becoming Accredited Living wage Employer

Yes

?

The Reasons are: following the procurement of over 100KW contract for the supply of electricity 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 £3,938,456 per annum. This amounts to a an increase in annual costs of £452,081 per annum (13%).

Options considered and rejected were a 12 month fixed contract duration that would result in a bigger increase of £3,994,970 (14.6%). A 24 month contract provides budget certainty for the next 2 years and thereby offering protection from the present short term geopolitical risks and help in easing budget pressures.

Assessment of Risk: Low.

The source of funding is: General revenue budget and schools devolved budgets.

Legal Advice obtained from: Richard Purcell, Legal Services.

Financial Advice obtained from: Rafeeah Khan, 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:   Dated 21st September 2026

                  City Mayor

FOR DEMOCRATIC SERVICES USE ONLY:

*           This decision was published on 25 September 2026.

*           This decision will come in force at 4.00 p.m. on 2 October 2026                                                    unless it is called-in in accordance with the Decision Making Process Rules.