Procurement of Utilities
To receive a presentation in relation to securing new energy contracts for Cheshire East. The Office of Government Commerce (Pan Government Energy Project) advise that improved prices can be achieved through adopting flexible, aggregated, risk managed energy contracts and the Cheshire East Procurement Recommendation is to enter into a fully flexibly contract with West Mercia Supplies, which is one of the accredited solutions.
Minutes:
Janet Ellison-Jones attended the meeting and gave a presentation on Energy procurement in Cheshire East. The Council currently had joint contracts with Cheshire West and Chester for electricity and gas supplies and these were in place until 30 June 2011. The Council was considering moving away from a traditional fixed price contract to a more flexible, aggregated, risk managed energy procurement though a Central Purchasing Body (CPB)
The benefits of using this method would mean that the Council would have budget certainty with a published capped price, which would be the maximum amount the Council would pay for 12 months (April to March). An added benefit would be that if prices fell, trading gains would be secured.
The next steps in the process were to secure CMT and Cabinet approval. This would be followed with a consultation process with schools.
RESOLVED – That the presentation be noted.