Energy company windfall for councils

An energy company is due to pass on profits of £2.4m to the four local authorities which back it.

Shropshire Council, Telford and Wrekin Council and Worcestershire County Council will each receive a little over £600,000 from West Mercia Energy. Herefordshire Council will get £551,000.

The company was set up in 1989 and today manages energy contracts for 2,250 public sector organisations.

A report to the councils said it had seen improving results over the past couple of years and was taking on more clients. It said the firm recorded a net profit of £2.5m with annual turnover increasing by around 38% to just over £186m, despite a background of rising energy prices.

West Mercia Energy manages gas and electricity supplies, water contracts, liquid fuels and carbon-cutting schemes for its customers.

The report noted the profits in the last financial year were very similar to the profits the previous year.

This news was gathered by the Local Democracy Reporting Service which covers councils and other public service organisations.

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