The report of the Director of Corporate Resources (Document “B”) will be submitted to the Committee to provide Members with an explanation of the process and background of the procurement path for the intended new electricity contract with N-Power.

Recommended –

That the report be noted and Members to provide comments on the planned contract procurement.

(Neill Morrison – 07582 109862)

The report of the Strategic Director of Corporate Resources (Document “B”) was submitted to the Committee to provide Members with an explanation of the process and background for the procurement path relating to the intended, new electricity contract with N-Power.  The new electricity contract would run from April 2023 to March 2027.

The Council had previously procured its energy through the YPO frameworks to minimise staff time involved in procurement processes, the economies of scale available from the size of contract being procured through YPO as well as Bradford being a founder member.  The water supply contract was also supplied as this would run alongside following deregulation and issues caused by rising inflation.

The Council was continuously approached by energy brokers and sales people and used these opportunities to carry out soft market testing to ensure we were still receiving the best value for money.  Whilst the normal level of price comparisons was not possible in the previous year, spot checks indicated that the YPO framework had still outperformed possible contracts that comparisons were made with.

Officers advised that the anticipated drop in energy prices did not happen due to the conflict between Russia and the Ukraine.  In addition to the low domestic price cap that worked against the wholesale market, there was no longer the option of re-circulating air in the wake of the Covid pandemic for health reasons.  Energy consumption in Council operated buildings had not decreased, apart from during the first lockdown.  With more employees returning to work, lighting etc still needed to be switched on. 

Members were then given the opportunity to comment and ask questions, the details of which and the responses given are as below.

·     A Member asked if savings would be made with the new street lighting programme and was told that savings would be made and there was also a framework on how buildings would be more energy efficient when renovated.  LED conversion would be rolled out wherever possible.  When asked what the plan was if energy prices remained high, Officers stated that there was a plan to get alternative sources of electricity, such as solar and money was available to do a large scale solar project.  Suitable sites were being sourced.

·     A Member asked whether N Power were buying alternative sources of energy and was advised by Officers that they were buying certificates of renewable energy but the sources could not be separated from the national grid.

·     A Member asked if Bradford had invested in off-shore re-newable energy and was informed that there were discussions underway with WYCA as part of a multi Council investment opportunity, which would be a parallel project with Bradford’s solar farm.

Officers also stated that since working from home, there was a drop in carbon literacy training when asked about the mindset of people in Council buildings.

Officers were asked if quotes were obtained for energy and confirmed that the contract would be with N-Power through the YPO framework.  A benchmarking exercise was due to take place in April 2023 with Crown Commercial Services to gain approval for future contracts if benefits could be realised from this process.

Resolved -

That the report be noted.

Action: Director of Corporate Resources