The final cost of Liverpool Council ’s energy contract gaffe is to be confirmed next month.
An excoriating report has been published today into how the local authority badly handled its renewal of utilities contracts that could end up costing the council £16m more in energy bills. Liverpool Council’s education and skills select committee was told on Tuesday how school governing bodies are “utterly terrified” of the potential implications of the foul up at the Cunard Building earlier this year.
Liverpool Council also provides energy to schools and Merseyside Fire and Rescue Service (MFRS), with the authority overseeing MFRS voting to continue to maintain their 36-year partnership with the council but vowing to monitor its options going forward. Following the publication of the report by accountants Mazars, it has now been confirmed when the true cost will be revealed.
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In a short statement on its website alongside the report, Liverpool Council said it is expected that the fee of the variable energy tariff between April 1 and June 30 will be reported to the council in August. Last month, the chair of governors at Northcote Primary School in Walton suggested the school was facing the prospect of job cuts after its energy costs had soared to 500% - partly because of the mistakes made at the council. He said the pressures were "unsustainable".
Earlier this week, questioning cabinet member for education and skills, Cllr Tom Logan, Cllr Alan Gibbons said: “Schools have no responsibility whatsoever for this, governing bodies are utterly terrified of implications of this, we ended the school year with a Damocles sword over their heads and I don’t think this can continue.” Cllr Logan said the council needed to work out what did the mistake cause but it did not know that yet.
He added: “Once we know that amount, we figure out how we’re going to pay for it and we can make concrete assurances that is exactly what’s going to happen.” In May, Merseyside Fire and Rescue Authority (MFRA) held an urgent committee meeting to discuss whether to retain its partnership with Liverpool Council.
Chief Fire Officer Phil Garrigan said alternative options will be considered for MFRA for future procurement of utilities from March 2023 onwards and the outcome of the Mazars’ report would be considered. By joining the Crown Commercial Services framework for energy, MFRA is expected to be hit with an additional bill worth £1m.
Committee chair Cllr Les Byrom said it was a “disaster we didn’t see coming over the horizon”.
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