Woking Council faces £325k energy bill hike from own company

Summarised from 2 outlets · Updated 22 Oct, 17:33 · Archive

Woking Borough Council's energy bill will rise by £326,000 after its wholly owned energy supplier increased prices.

Woking Borough Council's energy bill will increase by £326,000 after Thameswey Energy, a company wholly owned by the council, reviewed its commercial tariffs. Thameswey supplies heat, cooling and electricity to multiple council buildings connected to its district energy network.

The council cannot switch to an alternative supplier because its buildings are physically connected to Thameswey's system and the cost of connecting them to the wider grid is prohibitively expensive. Council executive member Louise Morales told an executive meeting that it was not economical to change the arrangement in the near future.

Thameswey reviewed its tariffs because historic prices had not been updated for a significant period and no longer reflected current market benchmarks, Morales said. She stated that commercial arrangements between the council and companies it owns should be conducted on an arm's-length basis, with the council neither receiving preferential terms nor paying charges that cannot be justified against the market.

Surrey Live reports that Thameswey was founded in 1999 to provide heating and cooling. Morales noted that the Thameswey system still uses gas, creating a tension with the council's goal to move towards more environmentally sustainable energy sources.

How it is being reported

• Council-owned energy firm increases council billsWoking Borough Council's energy bill will go up by £326,000, it has emerged.BBC Surrey · 22 Oct, 17:05
• 'Lack of forethought' hits Woking Borough Council with £325k fossil fuel energy hikeThe council's own energy company uses gas and will provide energy to civic buildings for up to 25 yearsSurrey Live · 22 Oct, 11:00

In this story: Woking Borough Council · Thameswey Energy · Louise Morales · Woking

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