Decision details

The Cabinet Member approved the new contractual arrangements for the Council’s supply of gas under the ESPO framework from 1^st April 2023 until 31 March 2027. 

Due to current market volatility it is deemed impossible to migrate the Council’s gas contract across to any other Framework. Failure to sign the ESPO contract in a timely manner will result in the Council’s gas being supplied off-contract and charged at the prevailing market rate for 2023/24 (then from 2024 onwards we would revert to corporate framework pricing).  It should be noted that the current market rate is circa 13p per kWh.  This could result in the Council’s gas expenditure reaching £2.2M in the event that the new contract is not signed. 

In a motion passed at Full Council on the 24 July 2019, the Council committed to achieve 100% clean energy across the Council’s full range of functions by 2030 (https://democracy.peterborough.gov.uk/documents/g4347/Decisions%2024th-Jul-2019%2018.00%20Council.pdf?T=2).  

In addition, in the Council-CMAP adopted at Full Council on the 4 March 2020, the Council committed to: Reviewing its entire electricity and gas contracts, and, where practical to do so, will seek to amend to 100% renewable electricity tariffs and 100% carbon off-set gas tariffs as soon as possible (https://democracy.peterborough.gov.uk/documents/s41130/11a.%20Cabinet%20Appendix.pdf) 

Conduct a fully compliant tender for the Council’s gas requirements – this was rejected as volume is not significant enough to ensure that value for money can be realised as the Frameworks operate on the principle of baskets and aggregate all of those signed up to the framework to obtain preferential pricing by buying when prices are low. 

Migrate to Crown Commercial Services Framework – rejected as this would not realise any benefit financially and could feasibly be more expensive (as new member of a new framework with no benefit of any forward purchasing).  

Remain with ESPO and sign the new contract under ESPO 192-23 for 4 years 01/04/2023 until 31/03/2027. Recommended due to being the most financially viable option for the Council.

None.

None.