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Schools Gas supply contract
The Council’s Schools Energy Club
natural gas supply contract, which provides gas for schools, 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 was a
significant risk of locking the Council in to high rates for an
extended period if the contract had been renewed in the usual way.
Most energy supply contracts let by the Council include provision
for extensions, but these had 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 - Schools Gas supply contract