Decision details

Cheshire East Council launched the Fairerpower Energy offering in March 2015 to supply energy primarily to the residents of Cheshire East, but also across the North West and Midlands. The scheme has been successful in its original remit of offering a challenge to the big 6 energy suppliers to increase competition and with enabling access to cheaper energy deals.

The Skills & Growth Company was established after Fairerpower was established, therefore transferring its management to the Skills & Growth Company was not an option at that time.  Now that the wholly owned company is established the Fairerpower contract with OVO is better placed within this vehicle for trading and management purposes. Trading via an ASDV is a more appropriate vehicle than a local authority that has limited scope to develop the brand due to restrictions.  The Skills & Growth Company will carry on with the initial vision aims and objectives. The contract with OVO will run until December 2019.

The Skills & Growth Company has more freedoms and flexibilities to trade than the local authority and therefore is a better location for the Fairerpower contract. The Skills & Growth Company has the ability to trade within Teckal exemptions, and given its current management responsibility (as the Council’s Agent) of the Fairerpower contract with OVO, it is recommended that the contract is novated to the Skills & Growth Company.

1.  To approve that the Director of Legal Services, in consultation with the Portfolio Holder for Finance and Assets and the Portfolio Holder for Regeneration, enter in to an appropriate legal agreements to novate the Fairerpower contract to the Skills & Growth Company, including (as a condition precedent) a Parent Company Guarantee whereby the Council will guarantee the performance of Skills & Growth under the Partnership Agreement post-novation.

2.    That the Director of Legal Services make changes to the Skills & Growth Company contract and management of the scheme to reflect the novation of the Fairerpower contract.

3.    That it be noted the Skills and Growth Company will brief through the Fairerpower Tariff Board on any future contractual matters so that the Council is fully sighted on them and reviewed periodically.