Brent Cabinet approves 2 year 'Purchase in Advance' energy deal

 

The first meeting of the new Brent Cabinet this morning approved a new Purchase in Advance energy supply contract for energy and gas across the Brent Council estate  including some schools. The contract is for a two year period 2022-24 rather than 4 years and for 22-23 represents a doubling in price compared with 21-22, reflecting the current energy crisis.

 

Cllr Paul Lorber addressed the Cabinet and this is the official record of the decision:

 

Cabinet noted the comments made by Councillor Lorber who had requested to speak at the meeting in respect of the item.  In addressing Cabinet, Councillor Lorber referred to section 3.2 of the report and sought further details on the basis of the decision taken in 2020 to provide for a two rather than four year energy supply period under the procurement framework along with an outline of any associated financial implications given the current and unprecedented increase in wholesale energy costs.

 

In responding to the comments raised, Councillor Mili Patel (as Deputy Leader and Cabinet Member for Finance, Resources & Reform) drew attention to the independent assessment of the Council’s energy procurement policy which had confirmed the proposed re-procurement arrangements remained fit for purpose and achieved prices better than market average as well as offering a range of additional services of value to the Council.  The proposed re-procurement and purchasing approach had also been designed to mitigate against overall market risk whilst also seeking to support the Council’s environmental objectives in considering how best to move towards procuring greener and zero carbon energy.

 

In terms of the overall financial impact (as detailed within section 8 of the report), members were advised of the difficulty in securing fixed term wholesale energy supply costs with the arrangements and approach outlined within the report designed to secure an optimal price for required energy usage and associated services whilst also seeking to mitigate against the risk and minimise significant exposure to further wholesale energy market volatility in the short to medium term.  Members noted the approach outlined also included the potential to avoid significant additional costs on energy contract prices in 2022-23 (on the basis detailed within the exempt appendix to the report).

 

Having considered the comments made and recognised the difficulties in predicting future market volatility at the time the decision was made to agree a two rather than four year energy supply period Cabinet RESOLVED:

 

(1)      To approve the award of a contract for the supply of electricity to NPower Limited for two years from 1^st October 2022 via a call-off from LASER Framework Y18003, and

 

(2)      To approve the award of a contract for the supply of gas to Total Gas and Power for two years from 1^st October 2022 via a call-off from the LASER Framework Y18002, and 

 

(3)      that alternatively to (1) and (2) above, to approve the award of contracts for gas and electricity to the next ranked Suppliers on Lot 1 of each of the Frameworks referred to in section 5 of the report, if NPower Limited or Total Gas and Power cannot, or do not accept the offer of a Council contract. Such award shall be in accordance with the offer and award process described in Section 7 of the report.

 

(4)      To approve the Council’s entry into an amended Access Agreement with Kent County Council referred to in sections 7.11 and 7.12 in the report, to enable its participation and purchase of gas  ...  view the full decision text for item 7.

 

The full Cabinet paper can be found HERE

Greens put the heat on energy companies and the three main parties

The Green Party today accused the Coalition and Labour of “political point-scoring” in the energy bill debate, arguing that meaningful measures to address the problems of cold homes, fuel poverty, and soaring bills are being sidelined.

In a new briefing paper outlining its vision for a low-carbon, affordable energy future, the party calls for a major nationwide programme to make all homes energy efficient.   If funded through ‘recycled’ carbon taxes this could bring an estimated nine out of ten homes out of fuel poverty, quadruple carbon savings, and create up to 200,000 jobs across the UK.   

It also argues for a transformation of the energy market to allow community energy firms priority access to the Grid, and for greater financial support for renewable energy companies.

The paper criticises the Coalition’s changes to the Energy Company Obligation, arguing that “watering down efficiency commitments at precisely the time they are most needed

In a section on Labour’s policy, the Green Party says it welcomes the relief that a short term price freeze would bring, but questions why Labour is not pushing for greater local ownership and democratic control over our energy infrastructure.  

Caroline Lucas, the Green Party MP for Brighton Pavilion, said:

It’s a scandal that the big energy companies are making large profits whilst many people are struggling with high bills and cold homes.  Sadly, by focussing on headline grabbing schemes, both main parties are sidelining  meaningful solutions to the energy bill crisis.

The failure of both main parties to seriously get behind serious energy efficiency measures is a key reason that energy bills remain high.   

We need a nationwide programme to make all homes super-energy efficient – with full insulation, modern boilers, and renewable energy sources.  By funding this through carbon tax revenues, the Government could bring nine out of ten homes out of fuel poverty, and create hundreds of thousands of jobs.

View the briefing paper HERE

Vulnerable to get help to find cheaper fuel tariffs

From London Councils
 

Vulnerable residents in up to 1.75million homes across London will be offered assistance by their local council to get a better energy deal and save money.  

The pioneering scheme involving 17 boroughs, including Brent,  and London Councils, the organisation which represents the capital’s local authorities, was given £686,655 by the Department for Energy and Climate Change (DECC) from its Cheaper Energy Together fund.

The initiative will help the capital’s most vulnerable residents by getting them a cheaper tariff for their gas and electricity bills.

Each borough plan to use their equal share of the funding to work with residents who could benefit most from switching their energy tariff and advise them what their options are. It is estimated that 325,000 homes in the 17 boroughs are in fuel poverty which means more than 10 per cent of income is spent on electricity and gas.

The aim of the project is to sign up as many Londoners as possible, especially those who struggle the most to keep warm, and collectively negotiate a better deal with the gas and electricity companies on their behalf.

Chair of London Councils’ Transport and Environment Committee, Councillor Catherine West said: “People who most need to keep warm to stay healthy are the least likely to make sure they are on the best energy deal. Some of the most vulnerable Londoners will not turn the heating on because they do not want to risk running up a large bill.

“This cross borough scheme will make a real difference this winter by advising residents about their options and helping them to switch to cheaper gas and electricity tariffs or suppliers.”

Kingston Council is the lead borough for the scheme. Council leader, Councillor Derek Osbourne said: “With energy bills soaring, we must help Londoners get cheaper energy deals and improve their home energy efficiency. Councils across the capital will do all that they can to help people, particularly the vulnerable and those on low incomes, keep warm at home.

“Switching collectively to one domestic energy provider to get better energy deals can benefit us all as residents.”