Decision Maker: Corporate Director of Strategic Resources
Decision status: Recommendations Approved
Is Key decision?: Yes
Is subject to call in?: No
Electricity energy tariff for the new council
for the period 1 April 2023 – 31 March 2024, as to whether
the new council has a 100% renewable energy tariff or a mixed
A decision has been made to utilise the
following Electricity tariff makeup of the supply for the new
council for the period 1 April 2023 – 31 March 2024:
• Bespoke fuel source 60% Zero Carbon for Business with 40% UK Renewable
A decision was made in September 2022 to award
the electricity supply contract to EDF Energy Limited via the CCS
RM6011 framework, for the supply of electricity for the
Council’s corporate functions, including street lighting and
illuminated street furniture, and traded services to school &
academy portfolios for the new council from 01 April 2023. The
supply contract will encompass the existing NYCC meter points and
the meter points from the seven boroughs and districts, which will
be brought into the new supply contract as their existing contracts
This decision is around the actual Electricity tariff makeup of the supply for the new council for the period 1 April 2023 – 31 March 2024, as to whether the new council has a carbon free or 100% renewable energy tariff or a mixed tariff (generation using gas, nuclear and / or renewable technology such as wind or solar) etc.
The decision has been made following a review of tariff options, carbon reduction opportunities and cost implications including consideration with the continuing volatility within the market.
Included below is some background around the Decision from Gary Fielding, so that you have further information around this and why the Decision has had to be made early than planned:
As Councillor Dadd referenced at County Council on 16/11/22, the decision was to buy electricity for the next financial year from EDF from a bespoke “Zero carbon for Business” tariff. This tariff will be 100% carbon neutral and will be made up of 40% renewables and 60% nuclear. Our current contract is 40% renewable; 4% nuclear; 51% coal and gas; and 5% other. This therefore represents a significant improvement in moving from 44% to 100% that is now carbon neutral.
This option has an extra estimated cost of c£64k for the year in order to secure Zero Carbon. As was previously advised, however, the Council’s annual electricity costs are already estimated to have increased from £6m to £18m.
When the original plan was developed in mid-September, and the Decision was placed on the Forward Plan, it was anticipated that the decision would be required in December. This had to be unexpectedly brought forward with a decision on the tariff being required by 18th November. We were made aware of that fact on 3 November but did not have sufficient information as officers to present options or recommendations. In fact, the final energy mix (as described above) was not finalised until late on Wednesday while County Council was still in session.
The supply / demand constraints and the continuing uncertainty generally across the electricity commodity market are all factors which have pushed this requirement forward and I am sure Members will appreciate the very fluid nature of the energy market in the current environment. We could have delayed further but the risk was that prices would further increase and we would also be less likely to secure the mix of energy as indicated above.
Publication date: 18/11/2022
Date of decision: 17/11/2022