• General
  • Reports
  • Decision History

This section allows you to view the general details of a Decision

Details

Status:
Decision Confirmed
Decision Maker
Director of Regeneration, Enterprise and Skills
Title:
Contract Award Report for Supply of Electricity and Natural Gas for Royal Borough of Greenwich -2020-2024 (Corporate Sites and Educational Establishments)
Is a Key Decision:
Yes
Purpose
Due Date
Wed 30 Sep 2020
Directorate
Regeneration, Enterprise and Skills
Include Item on Forward Plan:
Yes
Decision Type:
Officer
Decision Maker:
Pippa Hack
Decision Outcome

Awarded the Call-Off Contract with Npower to flexibly purchase electricity for HH (Half Hourly) metered, NHH (Non-Half Hourly) metered and unmetered supplies for the period of 2020-2024 (01/10/2020 to 30/09/2024). Noted that this is a Call-Off Contract established through Laser Energy’s Framework for the flexible procurement of and supply of electricity with additional services and the indicative annual contract value is £6.5 million.

Awarded the Call-Off Contract with TotalGP to flexibly purchase natural gas for DM (Daily Metered) and NDM (Non-Daily Metered) supplies for the period of 2020-2024 (01/10/2020 to 30/09/2024). Noted that this is a Call-Off Contract established through Laser Energy’s Framework for the flexible procurement and supply of gas with additional services and the indicative annual contract value is £1.5 million.

Authorised the Access Agreement relating to Laser Energy Frameworks for the flexible procurement and supply of electricity and gas and the use of Laser Energy’s Framework services, procurement types and baskets mentioned in sections 5.23-5.28 of this report. Note that, based on current RBG portfolio information, indicative forecast annual framework fees are £ 171,000 and that these are recovered via an uplift in unit rates.

Agreed to the corporate and non-corporate (schools) supplies in Appendix G (Electricity Supplies Site List) and Appendix H (Gas Supplies Site List) of this report to be included in this procurement arrangement.

Agreed to the procurement of REGO (Renewable Energy Guarantees of Origin) certified green electricity for entire corporate and non-corporate (schools) portfolio. Noted that the indicative annual cost implication would be £ 31,000 (0.59% premium).

Noted in section 5.35 of the report, the price premium and the cost implication of procuring green gas certified by BMCs (Bio Methane Certificates). Biomethane does not directly reduce emissions in the borough and would add £339,627 to the annual procurement cost compared to conventional gas. The Greenwich Carbon Neutral Plan Evidence Base recommends that the priority should be reducing energy consumption and emissions before considering offsets. The Council has not previously procured green gas and consequently has no budget provision. The Council will review in the early stages of this new supply contract whether to make a strategic decision, in light of financial pressures, to procure green gas, noting the significant price premium (19.3%). If the Council elects to opt in to green gas this could be undertaken from April 2021, subject to funding being identified to cover the additional cost.

This decision is not subject to call-in

Additional Information

D15 - General Exception
D16 - Special Urgency

The LASER framework agreements need to be signed by 30th September 2020, in order that the Council supplies can move to the new contract rates from the 1st October 2020. LASER have advised that failure to sign the agreements by this deadline would result in the electricity and gas supplies moving on to out of contract rates for the month of October 2020, which would significantly increase energy costs for this period at a time when Council resources are under pressure.

It has taken longer than was originally expected to finalise the decision report and providing 5 clear days’ notice before the decision is taken, and then waiting for call-in to expire would mean that it would not be possible to sign these agreements before the deadline, with significant financial implications.

For this reason, the Deputy Chief Executive has agreed that there are clear financial grounds for urgency (accordingly it is reasonable to take this course of action in the circumstances) and that it would not be prudent, nor in the public / taxpayers’ interest to wait for either:

  • 5 clear days’ notice to be given before a decision is taken
  • call-in to expire.

Given that the decision is urgent and cannot be reasonably deferred, the agreement of the Chair of Overview and Scrutiny Committee has been obtained under paragraph D16 of the Overview and Scrutiny Procedure Rules in the Constitution that the decision is be taken without giving the notice referred to above.

Decision Criteria

This Decision does not contain any decision criteria records.

Wards

All

Topics

This Decision does not contain any Topic records

Overview and Scrutiny

This Decision does not contain any Overview and Scrutiny records.

This section displays the history of the Decision.

Decision History

DateTimeCreatedUserFullnameStatusDescriptionDetails
12
Page size:
 15 items in 2 pages
22/07/2020 15:41:30Nassir AliBusiness Item Created 
22/07/2020 15:41:38Nassir AliStatus ChangedDecision Proposed [2]
22/07/2020 15:41:53Nassir AliWard AddedAll
22/07/2020 15:44:48Nassir AliContacts Edited 
03/08/2020 11:09:05Nassir AliGeneral Details Edited 
01/09/2020 14:03:32Nassir AliGeneral Details Edited 
01/09/2020 14:04:01Nassir AliGeneral Details Edited 
29/09/2020 19:49:26Nassir AliGeneral Details Edited 
30/09/2020 10:45:43Nassir AliGeneral Details Edited 
30/09/2020 10:48:16Nassir AliReport AddedDocument ID 25248: Contract Award Report for Supply of Electricity and Natural Gas

Approval/Comments

No history found.