Issue - meetings

[Report of the Director of Housing, Regeneration and Planning. To be introduced by the Cabinet Member for Climate Change and Sustainability.]

Awarding of the electricity and gas supplier contracts for the Council and its partner organisations. A total spend of approximately £6.2m per year.

The Cabinet Member for Climate Change and Sustainability introduced this report which sought formal approval for use of the LASER Energy Framework Agreement to administer the purchase and supply of the Council’s corporate gas and electricity contracts for the period 1 April 2020 to 31 March 2022 with the option to continue with the purchasing arrangements under a rolling forward buying commitment arrangement until 31 March 2025 (unless terminated by the Council).

The Cabinet Member noted the Council’s energy consumption represented a significant, but necessary cost to the Council. Haringey Council was committed to mitigating these costs as much as possible through flexible purchasing solutions, transactional efficiencies and energy conservation measures.

The strategy set out in this report ensured the Council reduced exposure to peaks in energy prices by spreading our purchasing over several months. In addition, the aggregation of our consumption with other public sector bodies helps reduce costs further, through economies of scale. And finally, this new contract would enable the Council to purchase green energy for a competitive price and give access to an energy efficiency advice service for all users to reduce carbon and costs.

In response to a question from the Leader, Officers informed LASER was not an acronym but just the name of the company.

Further to considering exempt information at item 30,

RESOLVED

1. To approve the use of the LASER Energy Framework Agreement to administer the purchase and supply of the Council’s corporate gas and electricity contracts for the period 1 April 2020 to 31 March 2022 (at an annual cost of £7.2m per annum) with the option to continue under a rolling forward buying arrangement up to 31 March 2025 (unless terminated by the Council) at an estimated total value of £36m.

2. To approve the use of LASER’s appointed energy framework suppliers for the supply of gas and electricity through the framework duration. The breakdown of contract spend between the appointed suppliers is estimated at; Npower (LASER Framework Y18003 - corporate electricity supplies, HRA and street lighting) at £5.2m per annum (up to £26m over 5 years), and Corona Energy (LASER Framework Y18002 - corporate gas supplies) at £2.02m per annum (up to £10m over 5 years); and to authorise the Director of Housing, Regeneration, & Planning to award the contracts and facilitate the execution, implementation and operation of the contract, including the use of ancillary services available under the contract

3. To authorise the Director of Housing, Regeneration, & planning to manage the Council’s energy purchasing strategy through price and risk. Reviewing options for alternative price risk management strategies for the supply of energy during this supply period in order to minimise risk and market volatility and obtain best value. This will be undertaken though advice of the LEP, LASER and energy suppliers.

4. To approve the use of a REGO backed ‘green’ tariff for Corporate Estate (Schools, Civic Buildings, Street Lighting etc.), as part of the Council’s commitment to carbon reduction. This will cost approximately £17k per year on top of the £5.2m electricity  ...  view the full minutes text for item 83