Agenda item - Energy Procurement Strategy - Award of Supply Contracts

Report of the Executive Director Economy, Environment & Culture (copy attached)

RESOLVED: That the Committee agreed -

1.To grant delegated authority to the Executive Director Economy,  Environment & Culture to procure and enter into call off contracts using the Crown Commercial 261 Services framework for the Supply of Energy and Ancillary Services (RM6011) as follows:

(i)    a call-off contract for Half Hourly and non-Half Hourly electricity and ancillary meter management and automatic meter reading data services with a maximum term of four years; and

(ii)  a call-off contract for gas and ancillary meter management and automatic meter reading data services with a maximum term of four years

(iii)  evaluate the comparison prices between an 100% Green tariff and a Brown tariff make a decision based on the environmental as well as economic objectives of the City Council,prioritising Green energy within existing energy budgets

(iv)  evaluate the various ‘basket’ options including fixed and flexible pricing and the length of the contracts in consultation with the respective budget holders and make a decision based on the environmental as well as economic objectives of the City Council, prioritising fuel-efficient and ‘green’ options within existing energy budgets

2.That any future review of energy supply contracts should explore an energy procurement strategy that supports local community energy providers.

17.1  The Committee considered the report of the Executive Director Economy, Environment & Culture which sought delegate authority to re-procure Brighton & Hove City Council’s electricity and gas supply requirements from 1 October 2020.

17.2  The Chair noted that an amendment had been submitted by the Green Group and asked Councillor Mac Cafferty to propose it.

17.3  Councillor Mac Cafferty said that this was an opportunity for the Council to intervene in the market and to use our purchasing power for the good of our planet. There were good financial reasons for looking at alternative models, and the City had some great local energy cooperatives, and we could reduce our reliance on fossil fuel and save money at the same time. The following amendment was proposed (changes in bold)

          2.1    Grants delegated authority to the Executive Director Economy, Environment & Culture to procure and enter into call off contracts using the Crown Commercial 261 Services framework for the Supply of Energy and Ancillary Services (RM6011) as follows:

(i)        a call-off contract for Half Hourly and non-Half Hourly electricity and ancillary meter management and automatic meter reading data services with a maximum term of four years; and

(ii)       a call-off contract for gas and ancillary meter management and automatic meter reading data services with a maximum term of four years

(iii)      evaluate the comparison prices between an 100% Green tariff and a Brown tariff make a a value for money decision based on the environmental as well as economic objectives of the city council, affordability of prioritising Green energy within existing energy budgets

(iv)      evaluate the various ‘basket’ options including fixed and flexible pricing and the length of the contracts in consultation with the respective budget holders and make a value for money decision based on the environmental as well as economic objectives of the city council, prioritising fuel-efficient and ‘green’ options within existing energy budgets

          2.2    That committee agrees that the future review of energy supply contracts should explore an energy procurement strategy that supports local community energy providers.

17.4  Councillor Hugh-Jones formally seconded the amendment.

17.5  Councillor Wares noted that the energy contracts had recently been reviewed, and this would therefore not apply for another four years.

17.6  Councillor Yates noted that by using ‘Green’ tariffs there would be additional costs of £102k and asked if that was against an expectation of increased costs over time. Officers advised that that was an estimated cost.   

17.7  Councillor mac Cafferty referred to the amendment and suggested that in 2.2 “the future review” be changed to read “any future review”.

17.8  The Committee considered the amendment (together the slight change), and it was agreed.

17.9  RESOLVED: That the Committee agreed -

1.    To grant delegated authority to the Executive Director Economy, Environment & Culture to procure and enter into call off contracts using the Crown Commercial 261 Services framework for the Supply of Energy and Ancillary Services (RM6011) as follows:

(i)    a call-off contract for Half Hourly and non-Half Hourly electricity and ancillary meter management and automatic meter reading data services with a maximum term of four years; and

(ii)  a call-off contract for gas and ancillary meter management and automatic meter reading data services with a maximum term of four years

(iii)  evaluate the comparison prices between an 100% Green tariff and a Brown tariff make a decision based on the environmental as well as economic objectives of the City Council,prioritising Green energy within existing energy budgets

(iv)  evaluate the various ‘basket’ options including fixed and flexible pricing and the length of the contracts in consultation with the respective budget holders and make a decision based on the environmental as well as economic objectives of the City Council, prioritising fuel-efficient and ‘green’ options within existing energy budgets

2.    That any future review of energy supply contracts should explore an energy procurement strategy that supports local community energy providers.