Green power tariff costs Wiltshire Council an extra £230k per year
The council reaffirmed its commitment to achieving net zero by 2030
Paying a green tariff to support renewable electricity generation is costing Wiltshire Council an extra £230,000 a year, its cabinet heard last week.
With the council having to tighten its belt to reduce a projected overspend of £6.5 million, one councillor wondered whether its environmental ambitions were costing too much.
The authority, which in July reaffirmed its commitment to achieving net zero by 2030, was challenged by Cllr Bridget Wayman, Conservative member for Nadder Valley.
Poring over the council’s balance sheet, she said: “Reading the section on the Property Carbon Reduction Programme, it says ‘the replacement of gas results in an increase in overall operating costs of a building with electricity currently costing more than gas.’
“If we are looking at trying to manage our budgets I do think we need to look very carefully at these things.
And referring to the extra levy paid by Wiltshire Council on top of its electricity bill to purchase electricity generated from renewable sources, the councillor said: “I know we patted ourselves on the back some years ago for having a green tariff, which ended up costing us more.
“The cost of that electricity, as we all know, has rocketed since then. I do think we have to make some sensible decisions.”
Cabinet member for finance Gavin Grant (Liberal Democrat, Malmesbury) said: “I too was concerned to read that paragraph and have asked for some further work to be done. We have to manage finances efficiently and effectively.
“It is right and proper that we head in the direction that council confirmed, but equally we have to live within our means.”
He promised to come back to Cllr Wayman and the council with some answers.
This week, the council told the Local Democracy Reporting Service that replacing gas boilers with low carbon alternatives would save money in the long run.
And it confirmed its commitment to the green electricity tariff.
“We are committed to reducing our carbon footprint while also ensuring we deliver value for money,” said Cllr Grant.
“As part of our Property Carbon Reduction Programme, we’re replacing gas central heating with low carbon alternatives, like air source heat pumps, at leisure centres and other council facilities.
“While electricity is currently more expensive than gas, the actual cost implications vary depending on energy prices, the type of heating installed, and the sites involved.
“For the most recent financial year, the estimated annual cost implication for the five sites we decarbonised was £50,000.
“However, the energy efficiency improvements carried out alongside these upgrades are expected to save the council £200,000 per year.
“We are also generating approximately £1 million worth of electricity through our solar panels.
“Over the five years of the programme, the savings from energy efficiency and renewable energy generation have more than offset the additional costs of switching to low carbon heating.
“We’ve also secured £5 million in capital investment through three successful bids to the Government’s Public Sector Decarbonisation Scheme, which has enabled us to focus on energy-saving measures without placing additional pressure on council finances.
On the green tariff, which the council signed up to in 2021, Cllr Grant said: “In terms of our electricity supply, we do pay a green tariff, which adds 1.154p per kWh to our contracted commercial rate — around 3.85 percent of our total electricity cost.
“This equates to approximately £230,000 per year.
“We believe this is a worthwhile investment in supporting renewable energy generation.
“Ultimately, our approach is pragmatic and evidence-based. We are determined to decarbonise our estate in a way that is financially responsible and environmentally impactful.
“We are constantly monitoring costs closely and make decisions that balance our climate ambitions with our duty to spend public money wisely.”