Decision Maker: Corporate Director of Strategic Resources
Decision status: Recommendations Approved
Is Key decision?: Yes
Is subject to call in?: No
Award of gas supply contract to Corona Energy
through YPO Framework Agreement 986, for the supply of gas to
corporate properties and traded customers from April 2021 to March
*PLEASE NOTE This decision was originally
published on or near the date of the decision and so call in no
longer applies. It has been re-published as part of the change in
committee management system that we use.*
North Yorkshire County Council’s (the Council’s) current gas supply contract expires on 31 March 2021. It is essential, for the continuity of service across both the corporate property estate and traded customers, that a new supply arrangement is in place from 1 April 2021.
Natural gas, as a commodity, is purchased directly from the market. The Service Area does not have the resources available to undertake the direct purchase of commodities, so the Council uses, and will require in the future, a broker to do this. The use of YPO’s new gas framework, where YPO act as the broker, is the proposed procurement route.
The urgency for the decision relates to the need to purchase gas ahead of use (12 months), commodity prices are very low at the moment and the sooner the contract is awarded the more advantage can be taken of the current dip in the gas commodity price.
This is a re-procurement of existing
provision. The current contract is with Corona Energy through YPO
Framework 621 (Gas) and commenced on 1 April 2017. This contract
will terminate on 31 March 2021 and there are no options to
In order for the Council to purchase gas (and other utilities) directly from the market without using a third-party broker, it would need to employ a specialist with the requisite knowledge and expertise, and this would take time to realise in the event that a broker contract is not secured. Due to the highly specialised knowledge the role would require and responsibilities it would perform, there is a possibility that such a role may never be justifiable or authorised by the Council.
Publication date: 21/04/2021
Date of decision: 02/07/2020