Decision Maker: Executive Director: Growth and Regeneration
Decision status: Recommendations Approved
Is Key decision?: Yes
Is subject to call in?: No
The Council’s electricity supply
contract for streetlighting has reached its scheduled end date
(30th Sept 21). This coincides with historically high energy
prices. This contract would normally be renewed under a competitive
process, but there is a significant risk of locking the Council in
to high rates for an extended period if the contract had been
renewed in the usual way. In common with most energy supply
contracts let by the Council, this contract has provision for
further extensions. In order to reduce the impact of current high
prices on the Council, the decision is being taken to extend the
current contract by a further three months beyond its original end
date, in order to allow time for the energy market to restabilise
before any new contract was let. This will still incur
significantly higher costs for the Council in the short term but
will limit this impact to a few months. In the meantime, Council
Officers are developing an alternative procurement approach that
would reduce the Council’s exposure to energy market prices
in future contracts.
Extension of the Council’s electricity
supply contract for streetlighting for three months.
Option 1 - A standard contract renewal process
was started, but early indications were that bids were likely to be
considerably more expensive than the previous contract. The tender
process has been stopped in favour of a short extension.
The Council contracts for electricity supplies through a licensed supplier, who sources electricity from the grid. At the same time, the Council generates significant amounts of zero-carbon electricity from its own wind turbines and solar farm, which is sold to the grid. Council Officers are developing proposals, under approval granted at the February 2021 Cabinet, to link these up, under a ‘sleeving’ arrangement, that will allow the Council to supply its own buildings from its own generation and from other local renewable energy generators. These arrangements are not yet in place.
Option 2 -
Option 3 -
Publication date: 05/01/2022
Date of decision: 19/10/2021