Decision details
Southend Energy Partnership, Transfer to New Supplier
Decision Maker: Cabinet
Decision status: Recommendations Approved
Is Key decision?: Yes
Is subject to call in?: Yes
Decision:
The Cabinet considered a report of the Deputy Chief Executive (Place) which sought approval to transfer the contract for the operation of Southend Energy from OVO Energy Ltd to Robin Hood Energy.
Resolved:
That the transfer of the contract to operate Southend Energy from OVO Energy Ltd to a new 5 year contract with Robin Hood Energy, subject to agreeing suitable commercial terms, be approved.
Reasons for decision:
A new contract with Robin Hood Energy for Southend Energy will revitalise the scheme and will support its provision for a further 5 years. Continuing Southend Energy provides a focus for encouraging households to switch to achieve the best energy contracts for them. The new contract with Robin Hood Energy does not have the same geographical constraints as the previous contract with OVO providing a wider market and for Southend Energy to take on customers from outside the Borough that respond to marketing within the area.
Other options:
To close Southend Energy. The ongoing impact of the additional switching and the opportunity to further encourage switching would be lost.
To renew or extend the contract with OVO. This was impossible to negotiate due to the changed circumstances and strategy at OVO.
To tender for a new supplier. There are no known alternative suppliers able or willing to take on a new contract for Southend Energy as the scheme is generally too small for the very large energy suppliers.
To convert Southend Energy into a full Energy Company with its own supply licence. This approach is not financially viable at the present time.
Note: This is an Executive Function
Eligible for call-in to: Place Scrutiny Committee
Cabinet Member: Cllr Flewitt
Report author: Carl Robinson
Publication date: 15/03/2019
Date of decision: 12/03/2019
Decided at meeting: 12/03/2019 - Cabinet
Effective from: 23/03/2019
This decision has been called in by:
- Councillor Matt Dent who writes For consideration by the Place Scrutiny Committee"
- Councillor Anne Jones who writes For consideration by the Place Scrutiny Committee"
- Councillor Ron Woodley who writes for consideration by the Place Scrutiny Committee"
- Councillor Martin Terry who writes for consideration by the Place Scrutiny Committee"
Accompanying Documents: