Issue details

The Council’s current arrangements relating to the supply of gas are via a framework consortium managed by Yorkshire Purchasing Organisation (YPO). The current Gas Supply contract expires in March 2025 and due to this the potential options available in terms of gas supply have been explored and assessed.  When deciding on how to proceed with the gas supply contract, consideration has been given to several factors including contract cost, gas purchasing strategy, confidence/assurance of the organisation, assurance of supply, contract term/length as well as potential transitional costs and implications associated with any move away from the incumbent provider.

Due to the ongoing, significantly high costs for gas and therefore the contract value and level of financial risk to the Council, the decision required a high-level strategic decision over signing the new Gas Supply contract and the future procurement of energy. Utility contracts are considered as day-to-day expenditure in the Council’s constitution, where the expenditure could reasonably be regarded as having been in the contemplation of members when the revenue budget was approved. Therefore, the Strategic Director for Corporate Strategy, Commissioning & Public Health can make the decision on how to proceed under delegated powers, in consultation with the Service Director for Finance (S151 Officer) and Portfolio Holders.  The decision required was whether to:

·   Remain with YPO and sign the new YPO Gas contract with their new gas supplier (yet to be confirmed/appointed).

·   Move Gas supply arrangements to another public purchasing organisation and sign up to their Gas Supply framework. Out of the viable other framework providers Crown Commercial Service (CCS) is considered as the best option.

At a meeting held on 9^th February 2024, the options available were presented to the Strategic Director for Corporate Strategy, Commissioning & Public Health and the Service Director for Finance, along with:

·       Service Director for Legal, Governance and Commissioning

·       Head of Risk

·       Head of Procurement

All senior officers present at the meeting gave their full support for the decision to move away from YPO and to enter into an agreement with CCS, using the Locked 12 (L12) basket.

It was noted that a retrospective cabinet note would not be required, but that this could be reported to Finance.

It was suggested that once the Council has signed with CCS, at the appropriate time there can be a review of the two baskets for gas and electricity supply together.

The Strategic Director Corporate Strategy, Commissioning & Public Health agreed on the approach presented in the meeting and concluded with the decision to move to the CCS Gas Supply Framework using the Locked 12 (L12) basket.

At a meeting held on 21^st February 2024, the following Portfolio Holders were briefed about the options which were available:

·       Cabinet Member – Finance & Regeneration

·       Cabinet Member – Corporate

·       Cabinet Member – Culture & Greener Kirklees Council

The Portfolio Holders gave their support to the decision to proceed with the move to the CCS Gas Supply Framework using the Locked 12 (L12) basket.