Issue - meetings

The Committee was advised that, following a recent procurement exercise, contracts had been awarded for the supply of gas and electricity to the Council as follows:

·      Gas – Gazprom (3 years from 12^th October 2021)

·      Electricity - Drax Energy (18 months from 1^st October 2021)

Permission for the Executive Head of Communities to award the contracts had been agreed by the Chief Executive on the 14^th September 2021 under the urgency provisions of Standing Order 35.

Due to the energy market’s specialist and volatile nature, the Council had engaged its energy consultants ‘Inspired Energy’ to undertake the procurement exercise on its behalf. A report was presented which explained the background to the contract awards and the processes undertaken by Inspired Energy for recommending the above suppliers and the respective contract terms. While the electricity contract would use 100% renewable energy, a ‘green gas’ option offered by Gazprom had been rejected on financial grounds due to the 42% increase over current expenditure. Opposing views were expressed on the merits of not pursuing that option.    

The report also proposed that Inspired Energy be appointed to sign the Council up to a flexible electricity contract via its ‘compliant single supplier framework’ to allow trading from the first quarter of 2022/23.

            R E S O L V E D – that:

A.     the decision taken under the urgency provisions of Standing Order 35 to procure new contracts for the supply of gas and electricity be ratified;

B.      the outcome of the recent exercise to procure new contracts for the supply of gas and electricity be noted; and

C.    Insight Energy be appointed to procure a flexible electricity contract for the period beyond April 2023.

In accordance with Standing Order 25(3), Councillor Ridge wished it recorded that he voted against resolutions A to C above.