The Director of Economic Growth and Neighbourhood Services submitted a report seeking approval to enter into new contracts for energy supply.  An appendix to the report setting out the Energy Purchasing Strategy was submitted separately in closed session (see Minute 26 below) due to the inclusion of commercially sensitive information.

The report explained that the Council currently spent in the region of £2m per year on energy supply and that the majority of this was procured centrally through a framework agreement managed by Crown Commercial Services, reducing risk and price through aggregated purchasing with other customers.  The current energy contracts would end on 31 March 2020.

To facilitate the procurement of new energy contracts, a range of different energy supply framework contracts and other purchase options had been assessed against the Council’s business requirements, such as customer service, length of advance buying window available and available risk strategies. Notice would be given on current contracts once new contract terms had been confirmed.

At the meeting an amendment to the recommendation was moved and agreed which specified that the Council should enter into contracts with an energy supplier(s) that could demonstrate that they purchase from 100% renewable generation sources.

Resolved –

(1)     That the Director of Economic Growth and Neighbourhood Services and the Assistant Director of Procurement, in consultation with the Lead Councillors for Corporate and Consumer Services and Strategic Environment, Planning and Transport, be authorised to select an energy supplier(s) that could demonstrate that they purchased from 100% renewable electricity generation sources, in respect of Reading Borough Council’s supply;

(2)     That, subject to the above requirement, the Director of Economic Growth and Neighbourhood Services and the Assistant Director of Procurement be authorised to enter into the recommended energy supply contracts for gas and power for the period 2020 to 2024 with Total Gas and Power Limited, through entering into an access agreement for the framework tendered by West Mercia Energy.