Decision

The Council extend its buying strategy with Crown Commercial Services (CCS) to 4 year and 6 month for the supply of electricity and makes commitment to the following;

01 April 2026 – 30 September 2028:

Variable 30 basket (purchase of electricity supply starting 30 months in advance of consumption and purchasing continues during the period of consumption).

The Councils estimated annual spend across the portfolio is £4.9m.

Reasons for the decision

Due to the voliate market a increasing costs a new aggregated contract for the supply of electricity was entered into 01/04/2023 with EDF via the CCS framework.  

This new contract was initially for three year as at the point of the decision, in September 2022, it was: 

a) A change in Supplier and framework solution

b) in the context of the energy markets being in unprecedent turmoil with uncertainty across the commodity market

c) with the anticipation of a successful onboarding of all the supply points, giving  continuation and security to supply

d) with the actual consumption being clarified based on wider asset management strategy

Following the successful onboarding of EDF and demonstration of cost avoidance by moving to the new supply and access to longer term buying strategies offered by CCS, the proposal is to take the anticipated advances of moving to the long-term variable basket offered.  

The current market available data indicates a continuing downward trend in forecast prices and this would be reflected in the variable basket.  However due to the nature of the lead time for hedging prior to consumption, the commitment to this strategy is required to be made 30 months in advance for the latter part of the strategy. EDF have been successful in being awarded the next framework enabling the continuation of the buying strategies offered by CCS with same supplier.

Alternative options considered

Continue with the L24 basket again with a further commitment to this in March 2024 to commence delivery in April 2026 onwards for 24 months.