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Electricity Contract Renewals (large sites)
10/01/2022 - Electricity Contract Renewals (large sites)
•The decision is to re-tender the three
electricity contracts set out below to 31/3/22.
•An Officer Executive Decision was taken in October 2021 to
extend the contracts for 3 months.
•Energy contract renewals are ordinarily made under delegated
authority following a December 2020 Cabinet Key Decision but cannot
be accomplished within the estimated budget due to the current very
high prices. Wholesale energy prices are currently at unprecedented
levels which are placing significant pressure on council
budgets
•Contracts must be re-let by 31/12/21 to avoid defaulting to
off-contract prices however due to the way that the energy market
is structured, a decision is needed by the xx December. As this
decision is not within the delegated Authority of the Executive
Director, and as a key decision is needed before the date of the
next Cabinet meeting in January there is a clear and pressing need
for the decision to be taken by the Executive director as a key
decision in line with the provisions of the constitution.
•The contracts are for three months (ending 31/3/22) as
alternative procurement strategies are currently being
developed.
•Legal and Procurement services have confirmed it will not be
possible to have new electricity contractual arrangements in place
by 31/12/21.
•A strategy of three-month rolling extensions or re-tenders
has been agreed at the Corporate Leadership Board meeting on
21/12/21, to avoid locking in prices at high levels for any longer
than necessary.