Sourcing Strategy for Energy Services

This paper seeks approval for a up to 5 year continuation of the current arrangements for the supply of electricity and gas via the Crown Commercial Services (CCS) framework. The existing arrangement is for the period from April 2016 to 31 March 2021. In addition, the Metropolitan Police Service (MPS) has undertaken a review of the market which has not identified any alternative suppliers who can meet environmental and cost requirements. Given the size of the potential contract and environmental implications any further proposal to use an alternative supplier following subsequent reviews will be subject to a MOPAC decision. The estimated value of a 5 year agreement 2021/22- 2025/26 is £102m.

The Deputy Mayor for Policing and Crime is recommended to:

1. Approve authority to continue to source electricity and gas supplies through the CCS Customer Access Agreement (CAA) for up to five years (from 1st April 2021), subject to the identification of a suitable alternative ‘green’ energy solution mid-period.

2. Note the work to be undertaken to consider alternative providers to be evaluated in order to meet GLA ‘green’ energy aspirations, recognising the 30 month contracted notice period within the CCS framework.

PART I - NON-CONFIDENTIAL FACTS AND ADVICE TO THE DMPC

1. Introduction and background

1.1. MOPAC currently sources its energy requirements via a Crown Comercial Services (CCS) framework which runs from 1 April 2016 to 31 March 2021. There is a annual opportunity each September to issue notice of termination of the Customer Access Agreement (CAA) from the framework.

2. Issues for consideration

2.1. The framework includes significant notice periods – upto 30 months – for different types of energy supply. The earliest a termination would take affect for those Customer Access Agreements (CAA) with 30 month notice is therefore March 2023.

2.2. The MPS has carried out a review of the market and reported that there is currently no alternative to the CCS framework. The MPS will continue to monitor the market for alternative opportunities.

2.3. Any subsequent proposal for a change to supplier following a review will be subject to a further MOPAC decision.

3. Financial Comments

3.1. The current annual costs of energy supply is £16.3m.

3.2. The estimated value of a 5 year agreement 2021/22- 2025/26 is £102m. This is based on assuming that the estate remains at the current size, rather than the previously expected reduction, to take account of the officer uplift, and includes consideration of fleet changes. The Meropolitan Police Service (MPS) will only pay for the energy consumed.

3.3. The costs of energy will be met from within the MPS budget.

4. Legal Comments

4.1. The Mayor's Office for Policing Crime is a contracting authority as defined in the Public Contracts Regulations 2015 ("the Regulations"). All awards of public contracts for goods and/or services valued at £181,302 or above will be procured in accordance with the Regulations.

4.2. Paragraph 4.13 of the MOPAC Scheme of Delegation and Consent provides that the Deputy Mayor for Policing and Crime (DMPC) has delegated authority to approve all unforeseen variations and extensions to contracts with an original value of £500,000 or above, when the variation or extension is greater than 10% of the original value and/or is for a period of more than 12 months.

4.3. The MPS has confirmed that the original contract was procured in accordance with regulations and that the nature of the original contract allows for the continuation of the agreement.

5. Commercial Issues

5.1. This paper deals with the procurement of gas and electricity. This is currently provided via a Customer Access Agreement from the Crown Commercial Services framework. The paper seeks approval for the continuation of the agreement beyond the March 2021 term. The MPS will continue to review the market.

5.2. Any review will include Responsible Procurement and London Environment Strategy requirements.

6. GDPR and Data Privacy

6.1. The project does not use personally identifiable data of members of the public, so there are no GDPR issues to be considered.

7. Equality Comments

7.1. MOPAC is required to comply with the public sector equality duty set out in section 149(1) of the Equality Act 2010. This requires MOPAC to have due regard to the need to eliminate discrimination, advance equality of opportunity and foster good relations by reference to people with protected characteristics. The protected characteristics are: age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex and sexual orientation.

7.2. There are no equality issues associated with this proposal.

8. Background/supporting papers

• Appendix 1 MPS Report Sourcing Strategy for Energy Services.