400 public bodies spend £4.3bn on energy

By Finance News On Jul 23, 2024

A total of 400 public sector organisations spent £4.3 billion on energy from April 2023 to March 2024, an increase from £3.7 billion the year before.

Box Power CIC has published its latest report on public sector energy costs, revealing substantial differences in spending across various organisations.

The investigation used freedom of information requests and account analysis.

The report details how different bodies, including local councils, government departments and major institutions like the BBC and HS2, are paying varied amounts for their energy.

The report suggests Hastings Council in East Sussex, England paid the highest rate for electricity at 66.2p per kWh, while Nottingham Fire and Rescue Service had the highest electricity cost among emergency services at 64.1p per kWh.

The analysis also shows discrepancies in gas prices, with Scottish authorities paying an average of 6.2p per kWh, compared to 12.4p per kWh in Yorkshire.

Kirklees Council’s gas costs were significantly higher than Portsmouth City Council’s, despite similar quantities of gas purchased, BOX Power CIC analysis shows.

The report underscores the potential savings available if local authorities matched the energy purchasing rates of national government departments.

It estimates that local authorities could have saved £700 million by achieving the same rates as government departments.

Corin Dalby, Chief Executive Officer of Box Power CIC, said: “When you consider that some local authorities also buy energy for the schools, leisure centres and more in their area who trust them to deliver the best value for money, the hugely different amounts paid raise some important and difficult questions.

“We will continue to call for greater transparency and openness within the energy market, so that taxpayers can hold their local authorities to account and so it is clear if public money is being spent effectively.”

Energy Live News has contacted the Department for Energy Security and Net Zero for comment.