Decision details

Renewal of the Council's electricity contract following the end of the existing agreement on the 30 September 2024.

Cabinet considered the report and RESOLVED to:

1.    Approve the new contractual arrangements for the Council’s supply of electricity and authorise the contract award to Total Energies Gas and Power Ltd via the ESPO Framework 191_24 for a maximum value of £21,691,780, relating to the period 1 October 2024 to 30 September 2028.

Renewal of the Electricity Contract with ESPO is the recommended option due to current market conditions. ESPO framework supplies electricity for non-half hourly, half hourly metered and unmetered supplies whereby ESPO act as an intermediary to buy electricity in the wholesale market on behalf of PCC via Total Energies Gas and Power Ltd. Moving to CCS Framework would not deliver any benefit at the current time due to market conditions. ESPO has a clearer and more transparent framework, and it is therefore in the best interest of the Council to renew at this time as to move to CCS would mean that we had a short period of paying off-contract flexible pricing which would be more expensive.

Other options considered:

·         Full Compliant Tender process –this was discounted as PCC volume would be insufficient to achieve best value for money in the market.

·         Award via CCS Framework – This was discounted as in the current climate moving away from ESPO would see increases to pricing in the short/ long term.

·         Do Nothing – this was discounted as we would be off-contract and pricing would be at the market rate and this would not be beneficial to PCC

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