Slough council seeks new energy deal as bills set to soar

The council could also sell off some of its £1.2bn worth of assets

A council has said it faces an extra £3m on its energy bill within three years if it cannot strike a new deal.

Record gas prices have driven up the energy price cap which could see bills across the UK rise by as much as 50%.

Slough Borough Council predicted its costs could go up to £9.56m by 2025 as a result, an increase of more than £3m.

It comes after the council was placed under government supervision last year following reports revealing a catalogue of failings, including rising debts.

'Cost avoidance'

The Berkshire council needs to provide electricity and gas for its lighting, heating, community buildings, car parks, EV chargers, street lighting and communal housing blocks.

In February, it agreed a one-year contract using energy broker Zenergi but is now looking for a new deal by April, according to the Local Democracy Reporting Service (LDRS).

The council's group manager of asset management, Jason Newman, said: "We are looking at an energy strategy that is principally focused on cost avoidance.

"We cannot save money on energy going forward in our corporate estate.

"Realistically speaking, we are trying to mitigate our financial impact as far as we can, and we are developing this strategy in a way that allows us to be as flexible and dynamic as possible."

Steven Mair, the council's chief financial officer, previously said the authority was considering selling up to £600m worth of its £1.2bn assets to reduce its £760m borrowing debt and end its financial crisis.

The operational costs attached with those buildings could reduce the council's energy bill by about £1.5m, LDRS reported.

The council will secure a new provider via an electronic auction, in which 15 suppliers will bid for the contract.

The agreement will be managed by commercial energy broker Beond Group, LDRS said.