Decision details

The electricity supply contract for the Council’s larger sites (Half-Hourly supplies), which involves a ‘sleeving’ arrangement (using the Council’s own wind turbines and solar farm to virtually supply Council buildings) was only extended to September 2024, in anticipation of new supply arrangements coming in to effect from October 2024. These new arrangements were the ‘Sleeved Pool’, a much wider sleeving arrangement involving City Leap and other renewable energy generators. The development of these new arrangements has taken longer than anticipated, and will not now be in place by October 2024.
The renewal of the current electricity supply arrangements included an option to call off a further six months for the larger site supply (October 2024 – March 2025) as a contingency in case of delays in the Sleeved Pool development work, which it is now proposed to invoke.

To extend the electricity supply contract for the larger Council sites for a further six months, calling off an optional extension included in the last contract renewal.

Work is in hand with City Leap to set up new supply arrangements to expand the level of renewable energy generation available to be sleeved (virtually supplied) to Council buildings, and the extent of the Council estate supplied through sleeving. This may now involve an interim sleeving arrangement ahead of the full Sleeved Pool, but these arrangements (which will be subject to separate approval), will not be in place before the current contract for the larger sites expires.
A conventional grid supply contract would lose the cost and carbon savings gained through the current sleeving arrangement. A short grid supply contract (to co-terminate with the renewal of the Council’s other electricity supply contracts in March 2025) would not attract significant interest from suppliers, so would be unlikely to secure the best price. A longer grid supply contract would further delay the introduction of the wider Sleeving arrangements being developed with City Leap.
Setting up an alternative sleeving arrangement with a different supplier through a competitive procurement (to maintain the benefits of sleeving) would be a significant undertaking, and would require a contract length of at least two years, further delaying long-term arrangements being developed with City Leap.