Minute 774 (Cabinet Book 1, Agenda Item No.9 refers)

Called-in by Councillors Dent, Jones, Terry and Woodley

The Committee considered Minute 774 of Cabinet held on 12^th March 2019, which had been called-in for Scrutiny, together with the 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 following decision of Cabinet be noted:

“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.”

Note: This is an Executive Function

Cabinet Member: Cllr Flewitt

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

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

Called-in to: Place Scrutiny Committee

Cabinet Member: Cllr Flewitt