The Director of Technical services submitted a report detailing the Council’s annual electricity and gas contract renewals, undertaken by Buying Solutions following the end of the current contracts on 30 September 2010.  He reported that the new contracts had increased the projected annual energy costs by £478,000, resulting in a £298,000 increase to the General Fund services and £180,000 to Schools.

RESOLVED: That

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

(2)  the impact of the revised energy contracts be reflected in the 2010/11 General Fund budgets and the net increase of £149,000 be met from the General Fund balances;

(3)  the impact of the revised energy contracts be reflected in the 2011/12 General Fund budgets and the net increase of £298,000 be added to the Budget Projections for 2011/15;

(4)  the impact of the revised energy contracts upon the Schools Budgets be noted and the report be referred to the Schools Forum;

(5)  it be recognised that no provision has been made for the 2011 contract renewals at this stage.  Given the unpredictability of the markets, further reports to be presented to the Cabinet as information is received; and

(6)  the revisions to the Carbon Reduction Scheme be noted and that £532,000 be included in the Budget Projections for 2012/13.