Council to pay extra £4.5m following ScottishPower’s exit from commercial energy market

The local authority could spend £26 million on total energy costs, according to a report

Liverpool City Council will reportedly face an extra £4.5 million after “failures” over its power supply.

According to a report, the council’s cabinet was not informed that ScottishPower, its electricity and gas supplier had exited the commercial market.

The company announced its decision two months ago.

The document seen by ELN, suggests the cabinet is recommended to “amend the electricity budget from £8.5 million to £13 million for operational sites and street lighting only”.

It is also recommended to “agree to draw down an estimated £4.5 million (based on current market prices). This may change depending on prices at the time of signing of the contract.”

The total energy cost, including fire service and schools, could reach £26 million, according to the report.

The report which seeks approval to begin a procurement process for the long-term supply of electricity and gas to the council, acknowledges that “there have been control failures and errors in this process that will be addressed and subject to an internal audit report and a lessons learnt exercise.”

ELN has contacted Liverpool City Council and ScottishPower for a response.

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