Decision

RESOLVED that:

A     Harlow Council enters into the gas flexible procurement basket in September 2026, for a contract with a forecasted value of £518,539.77 for supply of gas to operational and Housing properties from 01 April 2027 – 31 March 2028.

B     Authority is delegated to the Executive Director of Housing, Environment and Public Protection to enter into the new gas supply contract after procurement has completed.

Reasons for the decision

To ensure that the council secures a gas supply contract at favourable costs conducive to the market, whilst also reducing the council’s exposure to volatile price fluctuations due to ongoing geopolitical events.

Alternative options considered

Do nothing – by doing nothing, the council’s current gas supply contract will come to an end, meaning that all sites within the portfolio will subject to variable tariffs. By entering into this arrangement, this mitigates this risk by securing gas supply at competitive rates.

Fixed contract arrangement  - The council could enter into a “fixed arrangement” whereby an energy contract is procured at a fixed point in time against the wholesale energy market. There is a risk in doing so in that it is not guaranteed that the council can procure at the most advantageous time, leaving contracts to be exposed to a volatile wholesale market. The flexible arrangement reduces this risk by buying and selling energy at different times, providing an overall lower aggregated cost compared to a fixed contract.