Liverpool council could pay extra £4.5m after energy errors

Liverpool City Council may have to pay an extra £4.5m after it admitted "errors" over its power supply.

The council's cabinet was not informed that its electricity and gas supplier Scottish Power had stopped supplying commercial customers, a report said.

It means the council's electricity cost - for operational sites and street lighting - may rise from £8.5m to £13m.

However, the total energy cost, which includes schools and the fire service, will go up from £10.6m to £26m.

Schools and Merseyside Fire and Rescue Service pay from their own publicly-funded budgets outside of the council's general fund.

The council's chief executive Tony Reeves apologised for "control failures and errors in the decision-making process which meant the cabinet was not fully aware of this".

Liverpool Mayor Joanne Anderson described it as a "kick in the teeth", adding that: "I won't defend something that is a clear failure on the council's part."

The council said an independent audit would be conducted as it searched for a new energy supplier.

Richard Kemp, leader of Liverpool Liberal Democrats, said there would be "devastating consequences" for under-pressure frontline services and schools.

He said the council "lacks a professional procurement department led by skilled negotiators and with legal back-up, who can build well-constructed agreements and deals into a cohesive contract".

In April, Everton FC were asked to pay about £350,000 to the council over the latter's failed funding plan for the club's new ground.

It followed an "outstanding dispute" since the council spent £700,000 on fees preparing to offer a loan, although the club secured funding elsewhere.

In 2021, the government appointed commissioners to oversee parts of the council after Parliament inspectors found a "serious breakdown of governance" and "multiple apparent failures".

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