Issue - meetings

A report by the Section 151 Officer contains some exempt information within the appendices.

The purpose of the report is to consider the Business Case for the establishment of a licensed energy supply company between Portsmouth City Council and a joint venture partner as part of the Council's energy strategy.

DECISIONS by the Cabinet:

(1)       The Outline Business Case (contained within Exempt Appendix 1) and the operating model contained therein was approved.

(2)       Subject to the above resolution (1), delegated authority be given to the Director of Finance & S151 Officer, in conjunction with the Leader of the Council to approve the Final Business Case subject to the milestones and gateways (set out in the Outline Business Case) being successfully achieved with a maximum investment payback period of 4 years, provided that any changes between Outline Business Case  and Final Business Case (each of which shall include a Base Case) do not, in the opinion of the Director of Finance and S151 Officer, materially change either the amount of investment required or the level of financial and reputational risk that the Council will be exposed to.

(3)       That the investment required from the City Council to support the capital investment and working capital requirements of the Energy Supply Company be funded from the MTRS Reserve.

(4)       Delegated authority to the Director of Finance & S151 Officer, in consultation with the Leader of the Council, to conclude the terms of the agreement with the Joint Venture partner (including equity arrangements, security arrangements and exit arrangements); once concluded, authorise the City Solicitor to enter into such company constitutional, and associated and ancillary documents as required.

(5)       Subject to the approval of a Final Business Case, authority be delegated to the City Solicitor to form the Joint Venture company and associated relevant corporate structures that will best serve the objectives of the licensed energy supply company as described in this report and the Outline Business Case in order for the company to progress into Controlled Market Entry and subsequent full launch.

(6)       Prior to the establishment of the Joint Venture company and associated Corporate Structures, a Governance Board is established to guide the delivery of the Final Business Case, approve associated milestones and gateways and oversee overall progress; the Governance Board to be chaired by the Leader of the Council and comprise the Director of Finance & S151 Officer, the Joint Venture Partner, an Energy Consultant and the City Solicitor or his representative. 

(7)       In the event that any contractual arrangements or other assurances are necessary for the smooth implementation with third party suppliers prior to the establishment of the Joint Venture company and associated Corporate Structures, that the City Solicitor, in conjunction with the Director of Finance and S151 Officer and the Leader of the Council, is authorised to enter into any such agreement.

(8)       Delegated authority to the Director of Finance & S151 Officer, in consultation with the Leader of the Council, to liaise with Office of Gas and Electricity Markets (OFGEM), Department of Business, Energy and Industrial Strategy (BEIS) or any other statutory or regulatory body necessary for the formulation or functioning of the Joint Venture Company.

(9)       Delegated authority to the City Solicitor, Director of Finance & S151 Officer, in consultation with the Leader of the Council to establish appropriate Council-side shareholder oversight arrangements.