Author and Job Role Kelvin Menon – Surrey OPCC CFO
Protective Marking: Official
Executive Summary:
Electricity and Gas are one of the largest non-staffing expenses that the Force incurs. Following advice from Blue Light, which is part of the Government’s efficiency drive, the Force has decided to join a joint procurement with other Forces. This will be undertaken by Crown Commercial Services (CCS) and will cover the period from 1/10/27 to 31/3/32. The estimated value of the contract is likely to be £800k per annum.
Background
Currently the force purchases its energy through a contract with LASER commercial services, which is part of Kent County Council. LASER procures energy on the forward markets for a large number of public bodies and so far, this has delivered better value than purchasing energy at daily spot prices. Blue Light believe they can do better than LASER by using the Crown Commercial Services and hence all Forces are being encouraged to join their energy framework for the next procurement cycle. Energy is normally procured two years ahead, thereby hedging the price, hence the need for the decision to be taken now for energy required in October 2027.
Energy prices are by their nature volatile, and this provides some certainly as to future costs – although there is no guarantee of it being cheaper as this will depend on the energy market at the time the purchased is hedged compared with at the time it is required. However, the recommendation from Blue Light is for Forces to go down this route as based on historical data it should be cheaper.
The Heads of Procurement and Finance are supportive of this decision.
Recommendation
It is recommended that the PCC approves the award of a contract for the supply of energy between 1/10/27 to the 31/3/32 to Crown Commercial Services
Police and Crime Commissioner Approval
I approve the recommendation(s):
Signature: PCC Lisa Townsend (wet signed copy held in Office)
Date: 18th September 2025
All decisions must be added to the decision register.
Areas of consideration
Consultation
The Heads of Procurement and Finance have been consulted and approve the award.
Financial implications
Energy is a significant cost and has been allowed for in the budget.
Legal
Legal advice has been obtained to ensure that the Force can use this framework agreement and therefore avoid a full tender.
Risks
There is a risk that energy costs under this procurement route may be higher than budgeted for or those achievable by other routes. This is because of the volatility of energy prices over time.
Equality and diversity
N/A
Risks to human rights
N/A