Issue - meetings

To consider the Fairer Power Contract.

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.

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

The Skills & Growth Company had more freedoms and flexibilities to trade than the local authority and therefore was a better location for the Fairerpower contract; it had 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 was recommended that the contract be novated to the Skills & Growth Company.

The Portfolio Holder for Finance and Assets indicated his agreement to the proposal by countersigning the decision notice.

RESOLVED

1.  That approval be given for the Director of Legal Services, in consultation with the Portfolio Holder for Finance and Assets and the Portfolio Holder for Regeneration, to enter in to 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.

Councillors Chris Andrew and Peter Groves left the meeting prior to consideration of the remaining items on the agenda and did not return.