Purpose

To consider a report on the Council’s future energy
contract.

Decision

i. 
Adopted and approved
the Gas & Electricity Risk Management Strategy (Appendix A) as
follows:

a. 
Approved the purchase
of electricity on a ‘month ahead’ basis and gas on a
‘day ahead’ basis on the open wholesale energy market
price.

b. 
Set wholesale energy
market price caps for power for the summer 24 period (April 24 to
September 24) to £90/MWh and the winter 24 (October 24 to
March 25) to £110/MWh.

c. 
Set wholesale energy
market price caps for gas for the summer 24 period (April 24 to
September 24) to £35 MWh and the winter 24 (October 24 to
March 25) to £40/MWh.

d. 
If the wholesale
energy markets price increase such that the cap is expected to be
exceeded, or is exceeded, then Cabinet approves the purchase
strategy for eEnergy to buy the remaining energy volume in that
summer and/or winter period to limit further cost
exposure.

ii. 
Delegated authority to
the Executive Director of Regeneration, Housing and Environment, in
consultation with the Executive Director of Finance and Commercial
(the S151 officer) and the Lead Member (Financial oversight,
council assets, procurement, and revenues and benefits) to purchase
energy in line with the Gas & Electricity Risk Management
Strategy.

iii. 
Approved the compliant
procurement of new energy supply contracts with an estimated
contract value between £8m and £11m for the period
25/26, 26/27 and 27/28. The procurement will be based on the most
competitive price, supplier performance, bill validation and meter
services, and flexibility to amend volume to align with the Estate
Strategy. Council officers will be required to report back to
Cabinet by 31st December 2024 and seek approval to award new energy
contracts for the period 25/26 – 27/28.