Decision Maker: Cabinet

Outcome: Recommendations Approved

Is Key Decision?: Yes

Is Callable In?: Yes

Date of Decision: December 16, 2024

Purpose: To consider and approve recommendations on the Council’s procurement of energy contracts and the Gas & Electricity Risk Management Strategy.

Content: i.  That the extension of the energy procurement contract with Equity Energies Limited for the maximum period of 1 year (1st April 2025 to 31st March 2026) be approved to continue to provide energy procurement services to the Council.   ii.  That the procurement of new fixed and flex energy supply contracts using the OJEU compliant Gwynedd Dynamic Purchase System (DPS) at a maximum value of £3.453 million (exclusive of VAT) for the 2025/26 period be approved.   iii.  That the Gas & Electricity Risk Management Strategy for the Flex energy supply contracts be approved as follows:   a.  Approve the purchase of electricity on a ‘month ahead’ basis and gas on a ‘day ahead’ basis on the open ’wholesale energy market spot price’. b.  Set wholesale energy market price caps for power for the summer 25 period (April 25 to September 25) to £97/MWh and the winter 25 (October 24 to March 26) to £102/MWh. c.  Set wholesale energy market price caps for gas for the summer 25 period (April 25 to September 25) to £43/MWh and the winter 25 (October 25 to March 26) to £42/MWh.   iv.  If the wholesale energy markets price exceeds or is likely to exceed the maximum value cap contained in Recommendation 1.1 (iii) then Cabinet delegates authority to the Executive Director of Regeneration, Housing and Environment, in consultation with the Executive Director of Finance and Commercial (the S151 officer) and the Lead Member for Finance, Council Assets and Transformation to purchase energy in a manner which will seek to limit further cost exposure.   v.  That delegated authority be given to the Executive Director of Regeneration, Housing and Environment, in consultation with the Executive Director of Finance and Commercial (the S151 officer) and the Lead Member for Finance, Council Assets and Transformation to procure energy contracts and purchase energy in line with the Gas & Electricity Risk Management Strategy.   vi.  That delegated authority be given to the Executive Director of Regeneration, Housing and Environment, in consultation with the Executive Director of Finance and Commercial (the S151 officer) and the Lead Member for Finance, Council Assets and Transformation, to award contract(s) to successful bidder(s) subject to the bid(s) as a total being no more than the maximum value specified in Recommendation 1.1 (ii).