Agenda item

(Cabinet Member with Special Responsibility Councillor Hamilton-Cox)

Report of Director for Economic Growth & Regeneration (report published on 19.10.22)

Cabinet Member with Special Responsibility Councillor Hamilton-Cox)

Cabinet received a report from the Director for Economic Growth & Regeneration to outline a proposal for the Council’s electricity contract for the next four years. The Council’s electricity contract was due to expire on March 31, 2023 and the report outlined the reasons why the contract should be renewed for a period of four years. The contract covered all the non-Council housing property portfolio, as well as some Council Housing properties.

The options, options analysis, including risk assessment and officer preferred option, were set out in the report as follows:

The officer preferred option is Option 3.  Renewing the current approach to managing our electricity contracts provides a degree of confidence that would not otherwise be possible without incurring additional time and expense. This will also provide the maximum available security during a period of volatility in the energy market and allow for the council to continue towards its Zero Carbon agenda.

In accordance with the constitution the Chief Executive had consulted with the Chair of Overview & Scrutiny with regard to waiving call-in on Recommendation (1) in order that the completed contract could be returned to Npower before the end of October. Further details were contained in the Decision Notice to waive call-in appended to the minutes.

Councillor Hamilton-Cox proposed:

“That the recommendations, as set out in the report, be approved with a further recommendation ‘that Cabinet delegate authority to the Chief Executive to approve the award of contract with Npower, via the YPO, and to sign the same.”

Councillor Dowding seconded the recommendations and with the agreement of the meeting it was agreed that each of the recommendations should be voted on separately.

Cabinet voted on Recommendation (1) – (To renew the contract with Npower, via YPO, for four years) and agreed unanimously:

Resolved unanimously:

(1)             That the contract with Npower, via YPO be renewed for four years.

Cabinet then voted on Recommendation (2) :- (To pay the additional rate for the Renewable Energy Guarantees of Origin (REGO) backed tariff in order to support the Council’s decision to be net zero carbon by 2030.)

Resolved:

(8 Members (Councillors Brookes, Dowding, Frea, Hamilton-Cox, Jackson (Caroline), Matthews, Thornberry & Wood) voted in favour, and 1 Member (Councillor Heath) voted against

(2)             That approval be given to paying the additional rate for the Renewable Energy Guarantees of Origin (REGO) backed tariff in order to support the Council’s decision to be net zero carbon by 2030.

Cabinet then voted and agreed unanimously with the additional recommendation, Recommendation (3) – (that Cabinet delegate authority to the Chief Executive to approve the award of contract with Npower, via the YPO, and to sign the same.)

Resolved unanimously:

(3)             That authority be delegated to the Chief Executive to approve the award of contract with Npower, via the YPO, and to sign the same.

Officers responsible for effecting the decision:

Chief Executive

Director for Economic Growth & Regeneration

Reasons for making the decision:

The decision is consistent with the council’s priorities most notably those associated with the Climate Emergency.

The agreement of a 4-year long-term energy contract with Npower, via the YPO procurement framework should provide benefit to the Council through the collaborative nature and involvement of other parties and afford a degree of certainty within our financial forecasts, in what is currently a very volatile area of significant expense to the Council.