Purpose

Tendring District Council (TDC) has purchased their liquid fuels, Heating Oil, via a framework that ESPO tender (based on regions of which we are included in the Eastern Region award). The existing arrangements ended on 17 August 2024.
Heating Oil is purchased for the following Council buildings:
•Jaywick Enterprise Centre- Kerosene
•Clacton Leisure Centre – Heating Oil
A ESPO framework had been used to enable the Council to continue to purchase its fuel oils within this wider regional framework approach.
The initial decision Award for the Supply of Fuel Oils (https://tdc-mgov-prd-01.tendringdc.gov.uk/ieDecisionDetails.aspx?ID=10036)
commenced on the 1 October 2022 and was in place until 17 August 2024, with the option to continue to use ESPO arrangements to 17 August 2026.
Prices are quoted by various suppliers on the ESPO Framework, so it is a straightforward process to identify the supplier offering the most competitive prices for the two fuels we purchase as highlighted above. As such, this decision is to continue the utilisation of the ESPO framework until 17 August 2026. The ESPO framework and its costs were reviewed as part of this decision and both suppliers continue to provide value for money.
The prices quoted are ‘margin’ prices over the current market price along with a small load premium that reflects the quantity of fuel oil purchased at any one time.

Decision

To continue to utilise the ESPO framework to supply the Heating Oil Class D supply with Rix Petroleum (Hull) Ltd and the Kerosene supply to Certas Energy UK Ltd, in accordance with the associated ESPO Framework Agreement until 17 August 2026.

Alternative options considered

In order to demonstrate value for money, a price comparison was undertaken using the prices quoted within the framework agreement.
Based on the ‘margin’ prices quoted and the small load premium, it is proposed to continue to use the ESPO Framework as follows:
• Heating Oil Class D – Rix Petroleum (Hull) Ltd continue to demonstrate the most competitive overall price based on the Council’s existing fuel oil requirements.
• Kerosene - Certas Energy UK Ltd demonstrate the most competitive overall price based on the Council’s existing fuel requirements.
It is proposed to continue the utilisation of the ESPO framework until 17 August 2026 to the aforementioned suppliers using the associated ESPO Framework Agreement.