Gateway 2 Council Energy Contract Procurement

September 10, 2024 Acting Strategic Director of Environment, Sustainability and Leisure (Officer) Key decision Approved View on council website

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Summary

...to award the council's 2025-2030 gas and electricity contract to Npower Ltd for electricity and Corona for gas, using a Price Certainty purchasing strategy and fully managed service level agreement, while removing Renewable Energy Guarantees of Origin certificates and exploring green energy options.

Full council record

Purpose

To award the contract to
procure the council’s gas and electricity contract,
2025-2030.

Decision

1. 
That the acting Strategic Director of Environment,
Sustainability and Leisure in consultation with the Strategic
Director of Resources, Cabinet Member for Climate Emergency, Jobs
and Business and Cabinet Member for Equalities, Democracy &
Finance, approves the use of LASER’s appointed energy
framework supplier for electricity – Npower Ltd, under LASER
framework agreement Y22009 for an estimated value of £17m
p.a.; and the appointed energy framework supplier for gas –
Corona, under LASER framework agreement Y22008 for an estimated
value of £21m p.a. (combined contracts total value circa
£38m).
 
2. 
That the acting Strategic Director of Environment, Sustainability
and Leisure in consultation with the Strategic Director of
Resources, Cabinet Member for Climate Emergency, Jobs and Business
and Cabinet Member for Equalities, Democracy & Finance approves
the use of the following purchasing strategy and service level
agreement:
 
· 
Price Certainty (PC1) purchasing strategy
· 
Fully managed service level agreement
 
3. 
That the acting Strategic Director of Environment,
Sustainability and Leisure notes that further details on these
options can be found in paragraphs 12 – 33. The
recommendations above will be subject to annual performance
reviews, to assess if they are still the best option for the
council, and any changes will be determined by the Strategic
Director of Environment, Sustainability and Leisure via a Gateway
3.
 
4. 
That the acting Strategic Director of Environment,
Sustainability and Leisure approves the removal of all purchases of
Renewable Energy Guarantees of Origin certificates (REGOs) under
this contract and agrees to a commitment to explore Power Purchase
Agreements, and other viable green energy options, that are
addressed further in paragraphs 34 to 44 of this report.
 

Details

OutcomeRecommendations Approved
Decision date10 Sep 2024
Subject to call-inYes