The cost of heating Salford council's buildings including schools and offices has soared by a whopping 371 per cent to £4m soon. City Mayor Paul Dennett has approved the award of a 12-month contract for the supply of gas to all the local authority's premises.
The new supplier is Corona Energy with the deal kicking in on July 1 for 12 months. Council documents state that the huge increase is "due to the current geopolitical situation that has driven energy markets to new record highs".
An option to take on a 24-month contract was rejected because the supplier was unwilling to commit to a longer duration because of "current market volatility". "Any such contract would attract a significant risk premium and therefore not offer best value," the report of the decision said.
