Schools that pay over market rate for their energy bills as a result of Liverpool Council ’s expensive blunder could get money back as one headteacher admitted his school was “snookered” by rising energy costs.
Earlier this year, a catalogue of errors at the Cunard Building led to £16m being added to the Liverpool Council’s energy bill. Council leaders were not informed that the electricity provider it was dealing with had withdrawn from the commercial market, leading to the local authority - and other city institutions including schools and the fire service - being placed on a far more expensive contract.
At a meeting of the Liverpool Schools Forum this afternoon, Lee Kinder, assistant director of asset management, said discussions were ongoing with Department for Education about rebates being made available to schools that “pay over market rate” for energy as a result of the council’s error. Mr Kinder was named in an independent report by Mazars as the individual responsible for not informing the council’s cabinet of Scottish Power’s (SP) decision to temporarily close its trade desks, which ultimately led to the move to a more expensive tariff.
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Mr Kinder told assembled school leaders that Scottish Power’s decision to close its trade desk earlier this year was “extraordinary” and Liverpool Council was placed onto the more expensive rate between May 1 and June 12 before securing new terms with Crown Commercial Services. The Assistant Director added that for 2023-24, schools would be given “certainty going forward” for their energy costs as the authority enters into a fixed rate agreement.
He added Chartered Institute of Public Finance and Accountancy (CIPFA) have been assessing the individual impact on school paying above the market rate. Any such rebates would be subject to a cabinet report, thought to be in November.
Mr Kinder said discussions had been ongoing for a number of weeks and the council was keen to “conclude them as quickly as possible.” Despite Mr Kinder’s explanation, strong concerns were raised by the assembled headteachers at this afternoon’s meeting.
Gareth Jones, head of Gateacre School, said the school’s gross energy bill had gone up from £47,000 to £312,000 and its cash flow had been “diminished.” He added criticism of the council officer’s explanation as “hot air” amid schools having to manage “creaking” budgets.
Andrew Tremarco, headteacher at St Teresa of Lisieux Catholic Primary School, described the situation as a “debacle” and said schools including his own were “absolutely snookered.” He added: “No school can square this circle” and that there are “too many pressures happening now” meaning schools could not afford to wait.
Mr Kinder was unable to confirm how much schools may receive as discussions continue, but said the council now had a “purchasing strategy looking forward.” Ania Hildrey, Abbots Lea headteacher, said the council’s plans felt “painfully shortsighted” and conceded as a head, her level of confidence in the local authority was low.
Andrew Buck, Liverpool Council assistant director of finance, told school leaders there was “political will” to support their sites “but that’s all there is at the moment.” Mr Buck was also unable to confirm if the findings by CIPFA would be made public, which drew criticism from Stephen Brierley, headteacher at St Margaret’s C of E Academy.
He said: “I would press for openness and transparency, we’ve all been affected by this.” Cliff Barton, governor at Sudley Infants school added the issues around energy were something that needed to be carefully monitored to avoid sites entering “further deficit budgets.”
Mr Buck said conversations would take place with Mayor Joanne Anderson this evening with a view to the cabinet meeting on the matter in a little more than a month’s time.
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