Liverpool energy: Exact reasons for city tariff error remain unknown

The council's energy deal covers authority properties, maintained schools and Merseyside Fire and Rescue Service

Liverpool's chief executive has admitted the exact circumstances which led to a huge increase in the city's energy bill are still not known.

Mistakes and miscommunication left the Labour-led council on a more expensive tariff.

It could cost the city an extra £10m.

Under questioning at a tense finance committee meeting on Wednesday, Tony Reeves said he was not "ducking" criticism, but was not "personally responsible" for all contracts.

The meeting was called to approve a contract with Crown Commercial Service, which will replace its previous deal with Scottish Power.

Council officers previously failed to inform the city's mayor or cabinet members that Scottish Power would no longer do new deals for commercial customers.

The council's energy deal covers authority properties, maintained schools and Merseyside Fire and Rescue Service.

'Nothing passive'

The committee's chair, Labour's Barry Kushner said it was "clearly... a terrible situation".

He told councillors the authority did not know "what the costs will be and that's increasingly worrying".

One of the main objectives of the meeting was to establish a timeline of who knew about the issue and when they were told.

Mr Reeves said he was first made aware of a potential problem with the Scottish Power contract which could cost "a significant sum" on 17 March by lead government-appointed commissioner Mike Cunningham.

He said he sought assurances from a "senior colleague" as to whether that was the case and was told otherwise.

The meeting was told he and Mayor Joanne Anderson were informed about a significant issue on 23 March, along with deputy mayor Jane Corbett, the cabinet member for finance and resources.

Ms Corbett then held discussions with finance director Mel Creighton, who was not at Wednesday's committee meeting.

Several councillors raised concerns that schools might ultimately have to cover the extra cost of the increased bill, while some members, including Labour's Joe Hanson, called on the chief executive to resign.

Under questioning, Tony Reeves defended himself against Mr Kushner's description of his leadership as "passive".

He said there was "nothing passive about my leadership".

"When I became aware of issues, I made immediate checks," he added.

"If you are saying I should be personally responsible for every single council contract, that's not the chief executive's job, that's not me ducking responsibility."

City solicitor Dan Fenwick also confirmed an independent investigation into what lead to the soaring energy bill will cost a minimum of £80,000.

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