Council’s new energy contract to make significant savings
Liverpool City Council is set to award a new contract for the supply of gas and electricity to its assets – with a significant saving in energy costs.
The contract will run from April 1, 2026, to March 31, 2028, with the option to extend for an additional year. The recommendation was approved at the Council Cabinet meeting on Tuesday 21 January.
The new contract is expected to create around £2m of cost savings for the Council.
Electricity and gas are procured for use in Liverpool City Council assets, such as schools, libraries, gyms and offices. Some Council properties are tenanted with arrangements to recharge costs to the tenants. The Council also purchases electricity and gas on behalf of self-referring Liverpool Schools and Merseyside Fire & Rescue Service.
One of the new elements of this energy contact is the Council’s ability to sell surplus electricity generated by its own assets, such as the Paddington Village Combined Heat and Power plant, back to the grid, generating additional revenue.
Under the new contract, the Council will be able to offer its surplus electricity to the open market to obtain best value.
The Council will continue to prioritize the purchase of green electricity, backed by Renewable Energy Guarantees of Origin (REGOs), to reduce its carbon footprint. This action alone helps to reduce the carbon footprint of the city by 12,000 tonnes per year.
Cllr Liam Robinson, Leader of Liverpool City Council, said: “This new energy supply contract represents a significant step forward in our efforts to secure the best possible value for taxpayers while also supporting our commitment to environmental sustainability. We are confident that this partnership will deliver both cost savings and a more sustainable energy future for Liverpool.
“Ensuring we get the best energy contract possible gives the people of Liverpool the assurances they need that we are making the decisions needed to protect the financial well-being of the City. This new contract will help to guarantee the continuation of the vital services we carry out throughout the City.”