Decision details

Award of new three-year energy contracts

Decision Maker: Chief Executive - Gareth Edmundson

Decision status: Recommendations Approved

Is Key decision?: No

Is subject to call in?: No

Decision:

Following a successful procurement process, to award a three-year energy contract for the supply of electricity to ‘Bryt’ and gas to ‘TotalEnergies Gas & Power’. Commencing on 01 April 2024.

 

Reasons for the decision:

The decision is essential to enable to the council to cost effectively ensure the provision of energy (electricity and gas) to its buildings and facilities, and to those of partnering authorities as per the ‘Electricity and Gas Purchasing Consortium Agreement’.  Under the agreement with Cotswold District Council, Forest of Dean District Council, and West Oxfordshire District Council, Cheltenham Borough Council is required, as the lead organisation to sign all energy contracts on behalf of partnering councils.

 

The existing energy supply contract for electricity and gas, as signed on 21 March 2022, comes to an end on 31 March 2023.

 

Following a procurement exercise completed by our appointed energy broker eEnergy in collaboration with Publica, the preferred energy suppliers are ‘Bryt’ for electricity, and ‘TotalEnergies Gas & Power’ for gas.

 

This decision is urgent and must by made by no later than 2pm on Friday 29 September 2023 to avoid additional costs, due to the contracts offered only being valid until the end of September.  

Alternative options considered:

Option 1:  Not to enter into a contract for the supply of energy.  This option was rejected as the default position of being ‘off-contract’ would be significantly more expensive.

 

Option 2:  Re-tender again.  This option was rejected due to volatility in market costs.  The option presented includes a saving based on costs over the last two years, it is highly unlikely that a re-tender would result in a more favourable financial outcome.

Consultees

The re-tender of the energy contracts have been fully supported by Publica and the key partners who operate from our buildings.

Contact: Gemma Bell, Director of Finance and Assets and Deputy S151 Officer Email: [email protected].

Publication date: 28/09/2023

Date of decision: 28/09/2023