Issue - meetings

Environmental Services and Sustainability Portfolio

To consider report HPS/19 of the Head of Major Projects & Commercial Services.

The Cabinet Member for Environmental Services and Sustainability Portfolio presented report HPS/19 of the Head of Major Projects & Commercial Services.

The report explained that the Council had participated in a flexible energy procurement arrangement since 2008 under a Framework contract with LASER (Local Authority Energy Buying Group) which is due for renewal on 1st October 2020. It was noted the contractual arrangements cover the supply of gas and electricity to the Council’s operational buildings and had achieved significant savings for the Council during that time period.

The report contains proposals for the Council’s continued participation in those arrangements over the next contract period running from 1 October 2020 to 30 September 2024.

RESOLVED

That the Cabinet approves the Council’s continuation in the LASER Framework Contract for energy procurement for the period from 1 October 2020 to 30 September 2024.

Reasons for the Recommendations

LASER benchmarks their purchasing performance each year and shares this information with its customers. This benchmarking exercise indicates that LASER has been able to deliver prices to customers at 4.6% below the market average over the last 4 years. Based on current consumption this level of performance would equate to a total saving in energy costs over the next 4 year contract period of £98,000 assuming similar performance levels.

Given the estimated savings achieved through a flexible procurement strategy, it is recommended that the Council continue its arrangement with LASER and participate in the framework contract for the 4 year period from 1st October 2020 to 30^th September 2024.

The Pan Government Energy project recommended that to spread market risk, and avoid buying during periods of peak market pricing, “all public sector organisations adopt aggregated, flexible and risk-managed energy procurement” as provided under the LASER framework.