To seek approval
for LASER to conclude the procurement of flexible energy frameworks
for the supply of gas and electricity following an open OJEU
compliant tender process and to delegated authority to the
Corporate Director of Growth, Environment & Transport to enter
and sign the associated contracts on behalf of Kent County Council
as detailed below:
a) Flexible framework contract for the sale of gas, with a value of £600m over four years
b) Flexible contract for the sale of electricity, with a value of £900m over four years
The existing energy framework contracts will expire 30 September 2016.
KCC’s energy spend under these frameworks will be approximately £65m over four years. The remaining value is energy purchases made by LASER on behalf of other public sector customers who utilise the framework.
To maintain a sufficient window for purchasing energy requirements from 1 October 2016 onwards, the new frameworks will be established by 30 September 2014. This allows LASER to spread the purchases of future energy requirements, and mitigates the risk of purchasing at times of peak market pricing.
Decision type: Key
Reason Key: Expenditure or savings of more than £1m;
Decision status: For Determination
Division affected: (All Division);
Notice of proposed decision first published: 05/08/2014
Decision due: Not before 19th Sep 2014 by Cabinet Member for Commercial & Traded Services
Reason: In order that the proposed decision can be considered by the relevant Cabinet Committee before it is taken
To seek approval for LASER to conclude the procurement of flexible energy frameworks for the supply of gas and electricity following an open OJEU compliant tender process. The existing energy framework contracts will expire 30 September 2016.
Lead member: Cabinet Member for Commercial & Traded Services
Lead director: Mike Austerberry
Department: Growth, Environment & Transport
LASER customers will be consulted. To this
end, LASER met with customers between January and March 2014 to
advise on the procurement process and to obtain feedback on
customer requirements for the new framework. LASER will meet again
with all customers again between October and December 2014 to
secure their commitment to the new frameworks.
An Equalities Impact Assessment is included in the consultation documentation. The tender specified that all energy suppliers must:
-Comply with all relevant legislation and keep up-to-date with all developments and changes in legislation.
-Take steps to maintain this standard throughout the length of any awarded Agreement / Contract.
Suppliers were required to provide a copy of their Equality and Diversity Policy with their tender submission.
Informing Only: OJEU Award Notices will be issued once the contracts are executed. LASER will also notify all customers directly.
The proposed decision will be considered by the Policy and Resources Cabinet Committee on 19 September 2014
The procurement process does not have a specific mention in the LASER business plan as it is a business-as-usual replacement of existing frameworks. A Business Case for the procurement process was approved by the Commercial Services Executive Chairman prior to the tender being released.
Financial implications: Name: Nigel Hartnup LASER Energy Buying Group, Kent Commercial Services Phone number: 01622 236 770 Email address: email@example.com
Legal implications: 14/00096
Equalities implications: The proposed decision will, if agreed, exceed the financial criteria set out in the council's constitution