Decision details

The Council’s four most significant energy supply contracts (gas, street lighting, electricity-half hourly metered, electricity non-half hourly metered) expire on the 30^th September 2012. The replacement contracts (starting 1^st October 2012) will all be secured through Laser’s (energy brokers) flexible procurement contracts.

Flexible purchasing provides access to wholesale markets (which Bromley could not access on its own), aggregation of demand (leveraging economies of scale) and enables a strategic long term approach to manage the risk of changing prices. It enables partial volumes to be purchased both in advance and during the contract period to build up to the total amount (spreading risk). Flexible purchasing is considered industry best practice and Laser’s flexible offering has been independently evaluated by the Cabinet Office as ‘outperforming benchmarks’ and ‘excellent’. Flexible purchasing is recommended for all public bodies by the Pan Government Energy Review. Alternative purchasing methodologies are explicitly not recommended.

As Flexible purchasing involves advance purchases, Laser require confirmation to participate 12 months before contract start.

The decision was taken following consultation with the Resources Portfolio Holder, the Children and Young People Portfolio Holder and the Director of Children and Young People Services.