Slough council to secure energy consumption prices

The council initially faced a £760m borrowing debt which has now been reduced to £680m

A council is to secure the cost of its energy consumption in advance in a bid to tackle anticipated rising prices.

Slough Borough Council will buy 100% of its forecasted energy consumption until March 2023.

The authority is also expected to look at proposals to reduce energy consumption by street lighting "through changing street lighting lux levels", a report revealed.

The moves follow "a high likelihood of prices rising until the end of 2022".

The authority was initially recommended to buy some of its forecasted energy consumption in advance and purchase the remainder later on depending on "time-based triggers", according to an official report.

But due to the market being "extremely volatile" following the war in Ukraine, the council has been advised to buy its forecasted energy consumption for the next eight months "immediately" "to avoid potential for increasing winter prices", the report states.

It comes as the authority's general fund budget for the 2022-23 financial year is £2.4m.

But "as a result of further fluctuations in the market" it faced an increase by £1m "to manage the increased in-year pressure".

Plans to immediately buy the forecasted energy consumption were approved last week.

An energy volume reduction strategy is expected to be presented to cabinet in the autumn.

Future energy consumption could also be reduced through the sale of assets, the council said.

It comes as the authority - which is facing a £479m blackhole and £760m of borrowed debt - needs to make £20m savings every year until 2029 and sell up to £600m-worth of its assets over the next three years.