Wigan council will spend an estimated £10m a year on electricity in what has been deemed 'the best deal', a report has found. A new four-year contract has been awarded to current provider Npower by the council’s cabinet.
It will see the energy company provide power across all of Wigan town hall's property portfolio and schools from April 2023. No questions were raised by councillors in attendance at the cabinet meeting in Wigan Town Hall on October 27 as the plan was approved.
The ‘flexible purchasing’ approach means that it is not possible to give a precise cost over the course of the contract.
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“The flexible purchasing contract is designed to give best value throughout the contract by forward purchasing throughout the year when wholesale prices are lower,” the report said. The £10m figure was given the estimated spend per year.
In 2009, the decision was made to move the council’s electricity and gas contracts to flexible procurement arrangements from June 2010. Prior to this, electricity and gas was purchased through fixed price contracts.
“This approach had been effective in securing best value when the energy markets were stable,” a report stated. “However, in recent times the energy markets have become extremely volatile with wholesale prices being at record highs and all indications are that this will remain so for the foreseeable future.”
Npower is the current contractor for electricity in the borough, so this decision will have no impact on staffing or infrastructure, the council has said.
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