Issue - meetings

This report recommends that the Council enters into a new four year flexible procurement arrangement with LASER for the supply of gas and electricity for the period 1 October 2024 to 30 September 2028.  The recommendation is based on the financial savings made under the current and previous flexible procurement contracts in place since 1 October 2008 and the energy procurement expertise available from LASER. 

Careful consideration was given to a new four year flexible procurement arrangement with LASER for the supply of gas and electricity for the period October 2024 – September 2028.     Following a tendering exercise, LASER had advised that the highest evaluated tender scores were obtained by Total Gas and Npower and these had retained the gas and electricity frameworks respectively.

Under Contract Procedure Rule 8.1, as set out in the Constitution,  approval was required in advance of utilising a framework where the value exceeded the relevant EU threshold.

In addition, under the current framework the Borough Council had signed up to Renewable Energy Guarantee of Origin (REGO) backed electricity supplies.  This meant that electricity had been generated by a renewable source.  As part of the new framework there would be a greater number of routes to assist the Borough Council in achieving its net zero ambitions as supported by the Climate Change Strategy. This included purchasing energy direct from renewable generators.

Finally it was noted that the recommendations set out at 1.9 of the report were based on financial savings made under the current and previous flexible procurement contracts in place since 1 October 2008 and the energy procurement expertise available from LASER.  Procurement of energy through this public body buying consortium using the Purchase within Period (PWP) framework had proved to be financially advantageous to the Borough Council.

RESOLVED:  That

(1)             a further four year agreement with Npower, Total Gas and LASER (KCC) for the supply of electricity and gas (purchased under PWP) for the Borough Council’s high and low volume sites for the period 2024-2028 be approved;

(2)             the utilisation of the LASER framework under Contract Procedure Rule 8.1 be approved; and

(3)             the continued use of the REGO backed electricity tariff be approved and that alternative ‘green’ options be considered.

Decision Notice D230016CAB

Careful consideration was given to a new four year flexible procurement arrangement with LASER for the supply of gas and electricity for the period October 2024 – September 2028.     Following a tendering exercise, LASER had advised that the highest evaluated tender scores were obtained by Total Gas and Npower and these had retained the gas and electricity frameworks respectively.

Under Contract Procedure Rule 8.1, as set out in the Constitution, approval was required in advance of utilising a framework where the value exceeded the relevant EU threshold.

In addition, under the current framework the Borough Council had signed up to Renewable Energy Guarantee of Origin (REGO) backed electricity supplies.  This meant that electricity had been generated by a renewable source.  As part of the new framework there would be a greater number of routes to assist the Borough Council in achieving its net zero ambitions as supported by the Climate Change Strategy. This included purchasing energy direct from renewable generators.

Finally, it was noted that the recommendations set out at 1.9 of the report were based on financial savings made under the current and previous flexible procurement contracts in place since 1 October 2008 and the energy procurement expertise available from LASER.  Procurement of energy through this public body buying consortium using the Purchase within Period (PWP) framework had proved to be financially advantageous to the Borough Council.

After careful consideration of the legal, financial and value for money implications, Cabinet

RESOLVED:  That

(1)             a further four year agreement with Npower, Total Gas and LASER (KCC) for the supply of electricity and gas (purchased under PWP) for the Borough Council’s high and low volume sites for the period 2024-2028 be approved;

(2)             the utilisation of the LASER framework under Contract Procedure Rule 8.1 be approved; and

(3)             the continued use of the REGO backed electricity tariff be approved and that alternative ‘green’ options be considered.