Decision details

Ensuring contracts are now in place for gas and two-thirds of electricity supplies.
The intent is that the larger electricity supplies (known as half-hourly or ‘HH’ supplies) would be provided through a sleeving arrangement, but it has not proven possible to secure bids for this through an open tender. A sleeving solution has been offered through a compliant Public Sector Buying Organisation framework, but will not be available until August 2022.
There is a clear and pressing need to maintain a compliant contract for power to supply council buildings, streetlights, and schools.
Failure to make arrangements before the current contracts expire on 31 May 2022 would mean the council pays off-contract rates until new contracts are in place. These rates are up to 100% more expensive.
It is therefore not financially viable to await for a key decision to be taken at the next cabinet meeting on 7 June 2022.

To extend the current electricity supply contract by a further two months to 31 July 2022, at an estimated cost of £1m.

Option 1 - The option of a ‘bridging’ arrangement, involving moving BCC HH electricity supplies on to a fixed price interim contract with the Buying Organisation whilst the sleeving product was developed, was considered, but the shortest bridging option available would have delaying sleeving until Dec 2022, at significant additional cost.
A longer extension (three months) to allow more contingency for developing the sleeving product was considered, but this would also have incurred significant additional cost. However, the Council will be seeking independent assurance over sleeving options.
A standard contract renewal process would forego the cost and carbon benefits of sleeving.
Option 2 -
Option 3 -