Issue - meetings

Issue - meetings

Utilities Procurement 2024 - 2028

Meeting: 18/10/2023 - Cabinet (Item 74)

74 Utilities Procurement 2024 - 2028 pdf icon PDF 165 KB

The Head of Corporate Strategy has submitted a report to seek delegated authority for the Head of Corporate Strategy, in consultation with the Head of Financial Services / Section 151 Officer, to approve contracts for gas and electricity and agree to extend the current contract for water utilities.

Cabinet is recommended to:

1.     Delegate authority to the Head of Corporate Strategy, in consultation with the Head of Financial Services / Section 151 Officer, to:

 

·      decide the procurement route for purchasing the supply of gas and electricity from October 2024

·       agree to enter into contracts for gas and electricity, subject to a maximum term of four years from October 2024;

 

2.     Approve the extension of the Council’s water contract with Wave for a further two years; and

 

3.     Note the proposal to undertake an Energy Procurement Review to inform the Council’s longer-term approach (from 2027 onwards).

Additional documents:

Minutes:

The Head of Corporate Strategy had submitted a report to seek delegated authority for the Head of Corporate Strategy, in consultation with the Head of Financial Services / Section 151 Officer, to approve contracts for gas and electricity and agree to extend the current contract for water utilities.

Councillor Anna Railton, Cabinet Member for Zero Carbon Oxford and Climate Justice outlined that the report set out options for re-procurement of utilities contracts which were due to expire in October 2024.  The Council had, since 2004, purchased energy on a framework agreement with LASER (Local Authority South East Region), a Public Buying Organisation.  Options for re-procurement included buying into a new Public Buying Organisation contract, which was currently the preferred option.  The report also reiterated the Council’s decision not to buy green electricity due to high premiums, but to instead use the price gap to deliver projects which decarbonised the Council’s operations.   This was a pragmatic decision which had been taken on the advice of the Council’s scientific advisor.

Authorisation was also sought to extend the current water contract, which would expire in September 2024, with a recommendation to exercise the option to extend existing contract for a further two years on the same terms, conditions and pricing.

It was noted that an Energy Procurement Review was proposed within the next six months or so, to inform the Council’s longer-term approach from 2027 onwards.

Cabinet resolved to:

1.     Delegate authority to the Head of Corporate Strategy, in consultation with the Head of Financial Services / Section 151 Officer, to:

 

·      decide the procurement route for purchasing the supply of gas and electricity from October 2024

·       agree to enter into contracts for gas and electricity, subject to a maximum term of four years from October 2024;

 

2.     Approve the extension of the Council’s water contract with Wave for a further two years; and

 

3.     Note the proposal to undertake an Energy Procurement Review to inform the Council’s longer-term approach (from 2027 onwards).