Issue - decisions

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.