Andrew Snow, Energy Conservation Engineer, presented his report which gave a brief update on the procurement of electricity and natural gas on behalf of schools and suggested budget changes for the 2024/25 financial year. The extreme market volatility of the past two years had reduced and the council was seeing a reduction in prices but the future remained unpredictable.  The content of the report was only applicable to accounts that were part of the Crown Commercial Service framework agreement. The Council held no information for schools which made their own energy supply arrangements and could not comment on their arrangements.  It noted that the information provided was based on market intelligence covering half of the contracted purchasing period which ran from 1 October 2023 to 31 March 2024. Observations on future prices should therefore be interpreted as indicative.

Members discussed the need for caution regarding the forecasting of energy costs, noting that assuming too much of a reduction could have an adverse effect on budgets.

Officers noted work being carried out look into replacing gas boilers at local authority schools with air or ground source heat-pumps. Further work to look at capital allocation of funding for boiler refurbishments being used towards heat-pumps would be reported to a future meeting. It was also noted that any newly built schools would be carbon neutral.

Resolved – That the report be noted.