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
tariff
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
complete.
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.
None
Publication date: 18/11/2022
Date of decision: 17/11/2022