Agenda item

This report seeks approval to the award of four year contracts for the supply of gas and electricity to the Council via the LASER Energy Framework to cover the period of the 01/10/2024 – 30/09/2028.

Cabinet RESOLVED

(1)    To approve entry into an Access Agreement with Kent County Council trading as LASER Energy to enable participation and purchase of gas and electricity from their frameworks referenced in 1.1 and 1.2 of the report.

(2)    To approve the award of call-off contracts for the period of four (4) years via the two previously mentioned frameworks to Total Energies and Npower for the supply of gas and electricity to the Council, including corporate buildings, streetlights, housing estates’ communal areas and gas to a heat network, and Borough schools who contract for energy through the Council.

(3)    To approve the utilisation of a Purchase In Advance (PIA) energy buying strategy to be undertaken by LASER Energy on behalf of the Council and other contracting authorities who purchase energy through the frameworks.

(4)    To approve the utilisation where applicable of a ‘Fully Managed service (FM)’ from LASER Energy as opposed to a ‘Procurement Only Service Option (POSO)’.

(5)    To note that, as a key part of the Council’s commitment to net zero by 2030, the key objective to procure green energy had been addressed in section 8 of the report, via a ‘Green Tariff’ (REGOs), the ‘Green Basket’ energy option, and/or a Power Purchase Agreement (PPA), all of which were available via the LASER contract.  All three options would be assessed based on the provision of ‘additionality’ i.e. additional renewal power generation and a viable business case.

(6)    To note Brent’s ongoing engagement with the “Renewable Power 4 London Action Plan” work stream, which aimed to procure public sector energy for London Public Sector Bodies that was 100% renewable, through collaboration, with the ultimate aim of having a Power Purchase Agreement in place that Boroughs could procure renewable energy from, with the expectation that this option may become available during this next contracting period.

Eligible for call-in: Yes

Deadline for submission of call-in: 6pm on Monday 18 December 23

Councillor Tatler (as Deputy Leader and Cabinet Member for Finance, Resources and Reform) introduced a report seeking approval to award a four-year contract for the supply of gas and electricity to the Council via the LASER Energy Framework to cover the period 1 October 2024 – 30 September 2028.

In considering the report, Cabinet was advised that the recommendation to continue use of the LASER Energy Framework for the supply of energy to Council corporate buildings, street lighting, communal housing areas and a number of Brent Schools had followed an independent review of the Council’s energy procurement strategy and ability of LASER as an energy buying organisation to secure value for money.  In noting that the review had identified the procurement strategy as remaining fit for purpose and achieving prices significantly better than market average as well as offering a range of additional services of value to the Council, members were also keen to recognise the way in which the strategy had been designed to mitigate against the risk of further energy price rises in the short-medium term in order to secure consistency and achieve significant cost avoidance.

In supporting the recommended approach outlined in terms of the procurement strategy and award of contracts, members welcomed the benefits identified in relation to the cost effective nature of the energy being provided for many Council facilities, including schools, as well as the continuation of the Council’s active engagement in the work stream to increase the procurement of renewable sources of energy.

Having reviewed the exempt information contained within Appendices B and C of the report Cabinet therefore RESOLVED:

(1)    To approve entry into an Access Agreement with Kent County Council trading as LASER Energy to enable participation and purchase of gas and electricity from their frameworks referenced in section 1.1 and 1.2 of the report.

(2)    To approve the award of call-off contracts for the period of four (4) years via the two previously mentioned frameworks to Total Energies and Npower for the supply of gas and electricity to the Council, including corporate buildings, streetlights, housing estates’ communal areas and gas to a heat network, and Borough schools who contract for energy through the Council.

(3)    To approve the utilisation of a Purchase In Advance (PIA) energy buying strategy to be undertaken by LASER Energy on behalf of the Council and other contracting authorities who purchase energy through the frameworks.

(4)    To approve the utilisation where applicable of a ‘Fully Managed service (FM)’ from LASER Energy as opposed to a ‘Procurement Only Service Option (POSO)’.

(5)    To note that, as a key part of the Council’s commitment to net zero by 2030, the key objective to procure green energy had been addressed in section 8 of the report, via a ‘Green Tariff’ (REGOs), the ‘Green Basket’ energy option, and/or a Power Purchase Agreement (PPA), all of which were available via the LASER contract.  All three options would be assessed based on the provision of ‘additionality’ i.e. additional renewal power generation and a viable business case.

(6)    To note Brent’s ongoing engagement with the “Renewable Power 4 London Action Plan” work stream, which aimed to procure public sector energy for London Public Sector Bodies that was 100% renewable, through collaboration, with the ultimate aim of having a Power Purchase Agreement in place that Boroughs could procure renewable energy from, with the expectation that this option may become available during this next contracting period.