Commodity Broker services

2. Explanation

The procurement officer approached a number of energy brokers with regards to a fixed price for electricity commencing from the end of the current contract. At the time owing to the volatility in the energy market, the brokers approached were not able to offer fixed prices and advised that these would not be available until nearer the end of the current contract. One broker did come forward with a fixed price energy tariff for the supply of electricity for a fixed term that guaranteed the unit rates and standing charges protecting the authority from future price rises. This offer was time constrained due to the volatility of the energy market at this current time and therefore only available for a limited time. An officer of the Council entered into the agreements without authorisation and contrary to the requirements of the Constitution of the Council and as a result the Council is now bound by the new contract.