Decision

To approve, award, and enter into a new contract for the supply of gas and electricity through a framework with West Mercia Energy for up to 5 years from 1 April 2027, with an initial 3-year term

Reasons for the decision

The current energy purchasing arrangement expires on 31st March 2027 and needs to be replaced to enable the council to continue to deliver cost-effective electricity and gas supplies to the corporate, housing, streetlighting and school portfolios.

The strategy for purchasing energy has changed and developed over the previous iterations of this contract and has evolved from a fixed price model to a more flexible strategy that allows the council to cap budgets and return any savings achieved from lower prices directly back to the council.

The council’s Energy Team and Procurement Team have assessed the market and the service providers regularly over the last 15 years and each time have concluded that a Public Sector Framework offers the most suitable service for local authority energy purchasing. Up to 80% of Local Authorities in the UK utilise these frameworks. They provide good value for money with the cost of the raw energy being very competitive as well as providing additional services such as billing validation, siteworks assistance, query management and direct access to billing through a web portal.

These services enable the energy team to proactively manage energy on behalf of the council without the burden of liaison with energy suppliers and with minimal administration burdens.

I confirm that in making this decision I have considered the following in line with Wiltshire Council’s Constitution:

Key decision requirements: Yes

Views of relevant cabinet member(s), committee chairman, area board(s): Yes, discussed at Cabinet (3/2/26) and at F&P committee (29/1/26)

Consultation with cabinet member(s), the Leader and Scrutiny (for Executive decisions taken under Emergency Powers): NA

Consultation in accordance with the council’s consultation guidance and the views emanating from that process: Yes

Implication of any council policy, initiative, strategy or procedure: Yes, will support the council’s Financial Strategy, Asset Strategy and Climate Strategy

Staffing, financial and legal implications: Yes, as part of the sourcing plan and cabinet paper

The assessment of any associated risks in accordance with the Council’s risk management strategy: Yes, as part of the sourcing plan and cabinet paper

Involvement of appropriate statutory officers and/or corporate directors and directors: Yes

Regional or national guidance from other bodies where relevant: No

The council’s constitution, including the Procurement and Contract Rules (Part 10) and the Financial Regulations and Procedure Rules (Part 9), all relevant guidance, legislation, codes of practice, and protocols: Yes

Alternative options considered

Open FTS
This was considered but not deemed suitable due to the complex and specific nature of the contract requirements needing a specialist provider, and also due to the length of time that would be needed to complete this process.

Creation of a Framework (either open or closed)
This was considered as too complex to set up for a local authority, with specialist industry knowledge and experience required to ensure the competency of any suppliers on the framework. There was also a time and resource consideration that meant this was not the most efficient option for the council.