Liverpool City Council has been advised to start working on its plan to purchase energy from renewable sources starting in 2026.
The recommendation comes as the council aims to secure a competitive deal and reduce its carbon footprint.
The council has a contract for gas and electric with Crown Commercial Services, a Public Buying Organisation (PBO) until March 2025. However, in a bid to cut down on expenses, the Council opted for a fixed rate deal last year resulting in savings of £3.2m against the forecast budget in 2023/24. It is now proposed that this contract is rolled over to 2025/26.
The proposal will be discussed at the Cabinet meeting on February 20, and seeks permission for Liverpool City Council to assess the market for the best value and lowest risk options offered by PBOs. These organisations have substantial bulk purchasing powers, and can secure favourable rates.
The procurement process will also examine and prioritise greener electricity options in order to reduce carbon emissions (CO2) as art of the Council’s ambition to achieve Net Zero by 2030.
Deputy Council Leader and Cabinet Member for Finance and Resources, Councillor Ruth Bennett, said: “This forward planning is all part of the council’s improvement journey, making sure we give ourselves the time and space to make considered decisions, so we get the best value for residents and partners.
This is an opportunity to take a good look at the market
“We have already made significant savings over the last year thanks to the prudent decision to lock into a fixed rate deal in 2023.
“This is an opportunity to take a good look at the market and weigh up the opportunities and risks, before making a decision on our options for 2026 onwards.”
Councillor Nick Small, Cabinet Member for Growth and Economy, said: “Reducing energy consumption in our buildings and securing power from renewable sources is key to the Council achieving Net Zero by 2030, helping tackle the climate emergency.
“I very much welcome this planned approach to renewing our energy contracts to put us in the strongest possible position to deliver on our commitments and make sure we get good value for residents.”
The contract also covers Mersey Fire and Rescue Service Buildings, and schools in the city which have signed up to be part of the Council’s contract.
The recommendation to secure a competitive renewable energy deal has received praise and has been welcomed by the Government Commissioners, who describe it as a ‘timely and organised approach,’ and a positive step towards reducing the city’s carbon footprint.
Featured image (c) Beverly Goodwin, Creative Commons
