At its meeting on 10 January 2017 the Executive were advised that Leeds City Council has created a local authority led energy services company (LESCo) called White Rose Energy (WRE) to provide a “fairer” energy supply deal to households across the Yorkshire & Humber region.

White Rose Energy is being opened up as a partnership, to other local authorities across the Yorkshire & Humber region. Some authorities and housing associations have been involved in discussions to date, including Bradford Council.

Leeds City Council is aiming to have the first partners signed up by January 2017.

The Strategic Director Regeneration submitted a report (Executive Document “AW” with Not for Publication Appendix A and B) which sought Executive approval for Bradford Council to enter into a formal partnership with White Rose Energy.

Executive resolved –

That Option 2 contained in Executive Document AW be approved.

That the option to proceed to becoming a partner of White Rose Energy be approved; and is in consultation with the Director of Finance subject to due diligence which confirms the optimal benefits for working as a partner with WRE in delivering energy supply locally; that the Service Level Agreement is signed at the earliest opportunity.

Action: Strategic Director, Corporate Services.

The decision of the Executive has been called in. The reasons for the call in by Councillor Davies are set out below:

“I request that the decision of the Executive, 10 January 2017, relating to Agenda Item 12, White Rose Energy, be called in for the reasons detailed below.

·         Bradford Council and other members of the Yorkshire Purchasing Organisation have an existing contract by which they are provided with energy on a group procurement basis and there has been a documented intention to expand the group procurement approach, to include energy supplies for local residents etc

·         The decision of the Executive Committee, 10 January 2017, for Bradford MDC to become a partner of White Rose Energy, potentially undermines the basic principles of the Council’s membership of the Yorkshire Purchasing Organisation and thus possibly mitigates the potential for economies of scale, in terms of energy price reductions for residents of the Bradford District

·         The fact that the service to residents is described as a “not for profit” service, is likely to lead to many local people, particularly the more vulnerable, to conclude that this means the cheapest service. However, in light of the Warm Homes Discount not being offered etc, this may not be the case and the Council could find itself in disrepute if it is seen to be effectively receiving a £15 commission per household per annum, without being absolutely confident that all participating residents benefit by more than this amount. The Council has not provided projections of savings for residents, including the most vulnerable”.   

In accordance with Paragraph 8.6.9 of Part 3E of the Constitution Members of the Overview and Scrutiny Committee can, following consideration of the matter, resolve to:

(1)  Release the decision for implementation.

(2)  Refer all or part of the decision back to the Executive to reconsider it in the light of any representations the Committee may make.  The decision may not be implemented until the Executive has met to reconsider its earlier decision.

(3)  Refer the decision to full Council for consideration, in which case the decision may not be implemented until the Council has met to consider the matter.

If the Committee makes no resolution, in accordance with paragraph 8.6.9 of the Constitution, the decision may be implemented.

(Kate Smallwood – 01274 433885)

At its meeting on 10 January 2017 the Executive was advised that Leeds City Council had created a local authority led energy services company (LESCo) called White Rose Energy (WRE) to provide a “fairer” energy supply deal to households across the Yorkshire & Humber region.

White Rose Energy was being opened up as a partnership, to other local authorities across the Yorkshire & Humber region. Some authorities and housing associations had been involved in discussions to date, including Bradford Council.

Leeds City Council was aiming to have the first partners signed up by January 2017.

The Strategic Director Regeneration had submitted a report (Executive Document “AW” with Not for Publication Appendix A and B) which sought had Executive approval for Bradford Council to enter into a formal partnership with White Rose Energy.

The Executive had resolved –

That Option 2 contained in Executive Document AW be approved.

That the option to proceed to becoming a partner of White Rose Energy be approved; and is in consultation with the Director of Finance subject to due diligence which confirms the optimal benefits for working as a partner with WRE in delivering energy supply locally; that the Service Level Agreement is signed at the earliest opportunity.

The decision of the Executive had then been called in. The reasons for the call in by Councillor Davies were as follows:

“I request that the decision of the Executive, 10 January 2017, relating to Agenda Item 12, White Rose Energy, be called in for the reasons detailed below.

·         Bradford Council and other members of the Yorkshire Purchasing Organisation have an existing contract by which they are provided with energy on a group procurement basis and there has been a documented intention to expand the group procurement approach, to include energy supplies for local residents etc

·         The decision of the Executive Committee, 10 January 2017, for Bradford MDC to become a partner of White Rose Energy, potentially undermines the basic principles of the Council’s membership of the Yorkshire Purchasing Organisation and thus possibly mitigates the potential for economies of scale, in terms of energy price reductions for residents of the Bradford District

·         The fact that the service to residents is described as a “not for profit” service, is likely to lead to many local people, particularly the more vulnerable, to conclude that this means the cheapest service. However, in light of the Warm Homes Discount not being offered etc, this may not be the case and the Council could find itself in disrepute if it is seen to be effectively receiving a £15 commission per household per annum, without being absolutely confident that all participating residents benefit by more than this amount. The Council has not provided projections of savings for residents, including the most vulnerable”.   

In accordance with Paragraph 8.6.9 of Part 3E of the Constitution Members of the Overview and Scrutiny Committee were advised they could, following consideration of the matter, resolve to:

(1)  Release the decision for implementation.

(2)  Refer all or part of the decision back to the Executive to reconsider it in the light of any representations the Committee may make.  The decision may not be implemented until the Executive has met to reconsider its earlier decision.

(3)  Refer the decision to full Council for consideration, in which case the decision may not be implemented until the Council has met to consider the matter.

If the Committee made no resolution, in accordance with paragraph 8.6.9 of the Constitution, the decision may be implemented.

Following consideration of the call-in it was:

Resolved –

That the decision be released for implementation.

ACTION: Strategic Director, Regeneration