Peterborough City Council "embarrassing" tariff error
The authority failed to realise it had switched from a green tariff to regular
Peterborough City Council (PCC) didn’t notice it had switched from a green energy tariff to a standard tariff for more than a year.
The tariff reverted automatically in June 2022, but this wasn’t spotted until July 2023, council climate change manager Hannah Swinburne said.
The switch has been blamed for a jump in PCC’s net carbon emissions, which rose by more than 2,500 tonnes of greenhouse gas in the 2022/23 financial year.
The authority reported net emissions of 7,389 tonnes of CO2e (carbon dioxide or equivalent), up from 4,813 tonnes in 2021/22.
Cllr Nick Sandford (Liberal Democrats, Paston and Walton) said the issue was “slightly embarrassing” for the council.
“I find it really odd that we as an organisation want to get the council to net zero carbon and promote green energy but we’re using a company that’s giving people a financial incentive not to support green energy,” he said.
Cllr Sandford continued that he was told by the council’s finance team that when the error was finally spotted, it decided not to rectify it because it delivered a “significant budget saving”, but that he believes cheaper green options are likely available.
The council began buying energy from Total Power and Gas which was offset by energy produced by renewable sources in 2020 before it reverted to the National Grid in 2022.
Ms Swinburne said that when the error was finally found in July 2023, the council only had until early August to sign up for the green tariff, with this contract starting in October, so a decision was made to leave it as it was.
She added that she believes the council was quoted £135k for the “green premium”.
Moving forward, councillors asked if green tariff options could be investigated again by the council to determine if any are affordable and effective at reducing emissions.
Ms Swinburne said another option would be to invest the savings made by not switching tariffs into making council buildings more energy efficient, but councillors questioned whether this money could be ring-fenced for that purpose.
Councillors were also told there was no consultation on the switch between tariffs because it was an error.
PCC has committed to a target of net zero carbon emissions by 2030 for its own buildings and operations.
It will publish a roadmap to this in the summer.