Decision details

1.The purpose of this report is to :
a.Identify the different options open to the Council when it comes to the procurement of utilities
b.Explain the advantages of the Council procuring its utilities through the LASER agreement
c.Identify the savings that the Council has made during the term of the previous LASER agreement
d.Obtain Cabinet approval to the Council entering in to a new LASER agreement so that it can continue to procure its utilities through the LASER consortium up until September 2024

That
(i) the Council enter into a new LASER agreement so that it can continue to procure its utilities through the LASER consortium until 30th September 2024.

Option 1 - Other Frameworks - There are a number of other organisations that have set up frameworks however, these are very often restricted to authorities in specific parts of the public sector such as higher and further education, and the Ministry of Defence, and are not open to local authorities such as Ashford, or are specific to geographic areas.

Option 2 - Third Party Intermediary – a third party intermediary is an independent energy consultancy who would procure the council’s energy requirements on its behalf. The consultancy would be procured via a competitive tender based on a fee for their services, or a gain/share arrangement based on the savings made.

Option 3 - Direct Purchasing from a supplier – The Council could tender for the supply of utilities directly with providers, but as mentioned above without the benefit of buying power offered by a consortium it would be unlikely that this would offer value for money. There would also be additional administration costs, and there is also the possibility that if using a new supplier, they may not be able to offer competitive pricing.