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Corporate Gas supply contract
The Council’s natural gas supply
contract, which provides gas for Council buildings and shared
heating systems in Council housing, has reached its scheduled end
date (31st Oct 21). This unfortunately 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 is
renewed in the usual way. Most energy supply contracts let by the
Council include provision for extensions, but these have already
been used up on this contract. 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.
Decision type: Key
Reason Key: Result in expenditure of £500,000 or over;
Decision status: Recommendations Approved
Notice of proposed decision first published: 05/01/2022
Decision due: 19 Oct 2021 by Executive Director: Growth and Regeneration
Lead member: Councillor Nicola Beech, Cabinet Member with responsibility for Strategic Planning, Resilience & Floods cllr.nicola.beech@bristol.gov.uk
Contact: Louise Baker, Executive Support Manager Email: louise.baker@bristol.gov.uk.
Decisions
- 05/01/2022 - Corporate Gas supply contract