Purpose

Tendring District Council (TDC) has purchased
their liquid fuels, Heating Oil, via a framework that ESPO tender
(based on regions of which we are included in the Eastern Region
award). The existing arrangements ended on 17 August 2024.
Heating Oil is purchased for the following Council buildings:
•Jaywick Enterprise Centre- Kerosene
•Clacton Leisure Centre – Heating Oil
A ESPO framework had been used to enable the Council to continue to
purchase its fuel oils within this wider regional framework
approach.
The initial decision Award for the Supply of Fuel Oils
(https://tdc-mgov-prd-01.tendringdc.gov.uk/ieDecisionDetails.aspx?ID=10036)

commenced on the 1 October 2022 and was in place until 17 August
2024, with the option to continue to use ESPO arrangements to 17
August 2026.
Prices are quoted by various suppliers on the ESPO Framework, so it
is a straightforward process to identify the supplier offering the
most competitive prices for the two fuels we purchase as
highlighted above. As such, this decision is to continue the
utilisation of the ESPO framework until 17 August 2026. The ESPO
framework and its costs were reviewed as part of this decision and
both suppliers continue to provide value for money.
The prices quoted are ‘margin’ prices over the current
market price along with a small load premium that reflects the
quantity of fuel oil purchased at any one time.

Content

To continue to utilise the ESPO framework to
supply the Heating Oil Class D supply with Rix Petroleum (Hull) Ltd
and the Kerosene supply to Certas Energy UK Ltd, in accordance with
the associated ESPO Framework Agreement until 17 August 2026.

Alternative options considered

In order to demonstrate value for money, a
price comparison was undertaken using the prices quoted within the
framework agreement.
Based on the ‘margin’ prices quoted and the small load
premium, it is proposed to continue to use the ESPO Framework as
follows:
• Heating Oil Class D – Rix Petroleum (Hull) Ltd
continue to demonstrate the most competitive overall price based on
the Council’s existing fuel oil requirements.
• Kerosene - Certas Energy UK Ltd demonstrate the most
competitive overall price based on the Council’s existing
fuel requirements.
It is proposed to continue the utilisation of the ESPO framework
until 17 August 2026 to the aforementioned suppliers using the
associated ESPO Framework Agreement.