Purpose

B&D Energy will be moving their supplies to a PWP (purchase within period) basket from October 2026 in order to transition to an April PIA (purchase in advance) basket for gas and an April PC (price certainty) for electricity from April 2027.  To facilitate this, B&D Energy will need to enter into their own contract directly with LASER.

LASER are requesting written confirmation from the Council that they will underwrite any potential B&D Energy debt, as B&D Energy require a fully managed service from LASER.  Therefore, Cabinet will be asked to agree that the Council shall act as guarantor for any potential debt liability.

Decision

Cabinet resolved to:

(i)  Note B&D Energy’s transition from the Council’s Corporate Energy Contract to a standalone LASER contract, supporting improved tariff alignment, financial planning and operational predictability for the subsidiary, comprising of:

·  a temporary Purchase Within Period basket from 1 October 2026 to 31 March 2027, and

·  an April Purchase in Advance basket from 1 April 2027 to 31 March 2029.

(ii)  Approve the Council’s role in underwriting the financial liability associated with B&D Energy’s standalone LASER energy contract, noting that it would formalise an existing contractual exposure and not increase the Council’s financial risk;

(iii)  Authorise the Strategic Director, Inclusive Growth and Place, in consultation with the Strategic Director, Resources, and the Head of Legal, to finalise and enter into:

a)  a written agreement with LASER confirming the Council’s underwriting commitment;

b)  a separate agreement with B&D Energy setting out conditions for payment discipline, reporting obligations, and escalation protocols; and

c)  any other agreements in accordance with the strategy set out in the report.

(iv)  Note that B&D Energy shall continue to be invoiced directly by LASER, with all costs funded from its own budgets, and that the Council shall monitor payment conduct monthly and report quarterly to the Shareholder Panel.