The Cabinet had previously considered a report on the impact of energy price rises on the Authority on 9 July 2008.  The report had advised of the likely financial impact of increasing energy prices, including the renewal of our electricity and gas contracts from the 1 October 2008. Whilst energy markets remained volatile, the unexpected downturn in prices in September meant that the actual increases were not as high as expected and the Director of Technical Services’ report set out the implications for the Council.

Resolved: - That

(1)  it be noted that the offer made by OGC Buying Solutions was competitively tendered and was accepted using Delegated Authority;

(2)  the impact of the revised electricity and gas contracts be reflected in the 2008/09 budget with the sums of £912,000 and £655,000 respectively being transferred from balances; and

(3)  the impact of the street lighting, electricity and gas contract renewals during 2008 be reflected in the 2009/10 budget with £3.5 million being approved.

(4)  at this stage, no further sums be set-aside for the 2009 contract renewals given the unpredictability of the markets and further reports be presented to Cabinet as information is received.