Merseyside Fire and Rescue Service (MFRS) will continue to source its utilities from Liverpool Council for at least another two years following the energy contract debacle.
A partnership between MFRS and the local authority will extend towards 40 years as the fire service is expected to confirm next month that it will approve the procurement of electricity and gas through Liverpool Council until 2025 despite an expensive contract mess-up at the Cunard Building earlier this year. A series of mistakes and miscommunications led to the council being placed onto a higher tariff that will add millions to its own bill and those of city schools and the fire service, who are involved in the same deal.
In May, Merseyside Fire and Rescue Authority, which oversees the service, agreed a move that is expected to cost an additional £1m, to stick with Liverpool Council for its provisions for this year at least. A report drafted ahead of the fire authority’s Community Safety and Protection Committee said it would enter into contracts for the supply of electricity and gas via the Crown Commercial Services (CCS) framework through the local authority.
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The purchases will be made through two windows by Liverpool Council until March 2025. The report said: “If the Authority does not enter into a new energy contract it would face a major risk of having unmanaged energy rates/costs in a volatile market and potential interruptions to supply and possible business continuity implications.”
It added that MFRS officers asked Liverpool Council’s internal audit to review the process for managing contracts devolved to a third party. The report went on: “Although Internal Audit have yet to complete their review, officers have agreed with Internal Audit that all such contracts must now be included on the MFRS contract register with the appropriate review date and officer responsible, so the service is involved in ensuring contract negotiations are commenced and new contracts are in place as required.”
MFRS officers have reviewed and are in agreement with Liverpool Council that the CCS framework offers the “greatest resilience to market changes and the largest volume of public sector customers.” Officers have noted the findings of the critical Mazars report into the council and await details of additional reports and any further recommendations and action plans.
The report said: “The purchasing of utilities with Liverpool Council via the CCS framework is still considered the best option available to MFRA, offering MFRA the greatest buying power and specialist knowledge of both LCC and via the CCS framework. Officers will continue to review the audit reports and closely monitor the performance of the energy contract over the next 12 months to determine a longer-term strategy for energy purchasing from April 2025.”
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