Decision details

Southampton Energy Services Company

Decision Maker: Cabinet

Decision status: Recommendations Approved

Is Key decision?: Yes

Is subject to call in?: Yes

Purpose:

To consider the report of the Cabinet Member for Sustainable Living seeking approval to sign the contract with the preferred bidder, secured via the published open invitation to tender for an energy supplier, to enable delivery of the Southampton City Council energy supply brand.

Decision:

(i)  Following an evaluation process undertaken in accordance with the contract procedure rules (CPR), Cabinet are recommended to endorse the evaluation outcome and to approve the award of the contract to the winning bidder identified in appendix 1 for a period of 5 years from the contract start date (planned 9th March 2018) subject to continued satisfactory performance and meeting the council’s contractual requirements.

(ii)  To delegate authority to the Associate Director Capital Assets, to approve decisions relating to the development, operation and financing of the Energy Supply Service from contract signing onwards.

(iii)  To delegate authority to the Associate Director Capital Assets, to develop and secure contracts with committed local authorities and social landlords to enable regional endorsement and partnership working with the Energy Supply Service.

(iv)  To delegate responsibility to the Associate Director Capital Assets following consultation with the Energy Supply Service Project Management Board and the Tariff Setting Board to manage the requirements of the contract and to agree the setting of tariffs, rebates and marketing resources for the Energy Supply Service.

Reasons for the decision:

1.  As approved at cabinet 20th June 2017, the council have run a two stage procurement process to secure a partner organisation, in line with procurement regulations, for a 5 year concession, which will enable the council to establish an Energy Supply Service.

2.  The closing date for responses was the 12th January 2018 and at the closing deadline three responses had been received. This was in line with expectations.

3.  The evaluation process established that the winning bidder submitted the most economically advantageous tender and it is recommended that the contract be awarded to the winning bidder.

4.  Not only is the winning bidder able to provide the services we requested but many aspects of their bid are innovative in the existing energy market, particularly with regards to proven delivery of the white label model and bringing about alleviation of fuel poverty, which is one of the City Council’s key objectives.

Alternative options considered:

The market has been tested and alternative bidders were considered through an open tender process. The winning bidder submitted the best quality bid.

Report author: Jason Taylor

Publication date: 20/02/2018

Date of decision: 20/02/2018

Decided at meeting: 20/02/2018 - Cabinet

Effective from: 01/03/2018

Accompanying Documents: