£1m savings on gas and insurance in pipeline at North Lincolnshire Council
More than £1-million will be saved for the public purse by two new contracts, North Lincolnshire Council announced today.
Following what are described as tender exercises, the council has announced plans to award its gas and insurance contracts.
The four-year gas contract from June 2013 will be awarded to British Gas Centrica.
This will see "a saving on the management fee of £200,000 over the life of the contract."
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From next Monday (October 1) both Zurich Municipal and Chartis will provide the council’s insurance.
The three-year contract represents an annual saving of up to £300,000 - and up to £900,000 over the contract's life.
Councillor Neil Poole, from Messingham, Cabinet member for Policy and Resources, said: “When elected we made it our vow to reduce administrative costs for the hard-pressed council tax payer.
"With the help of our officers, we continue to deliver on that promise.
“The price of natural gas has risen some 200 per cent over the last ten years.
"It really is good news that at a time of rising prices, we are not only buying it cheaper, but we also have plans to use less.
"Renegotiating the council insurance contract has seen us capture a 24 per cent saving on last year’s premium.
"These two contracts have produced over £1m in savings for local residents.
“We use purchasing frameworks with other organisations to effectively pool our buying power.
"That ensures we get the best prices. We must never forget its local residents that pay the bills.”
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