PROCUREMENT NEWS Local authorities are failing to switch to renewable energy

 

According to LocalGov UK, local authorities are spending more than £863m with the Big Six energy companies every year.

It has since been revealed that “no local authority in Britain has switched to a fully renewable energy supplier”.

 

Is there a renewable future for local authorities?

It was reported that “nine out of ten local authorities are supplied by one of the major oil and gas companies” after energy supplier Bulb submitted a freedom of information request to the UK Government.

It was also found that there are large variations in what councils are currently paying for energy, something that could be reduced if councils swapped suppliers.

This information suggests that there are opportunities for renewable energy suppliers to work with local authorities across the country to build a more renewable future.

With regard to the findings, Bulb co-founder Hayden Wood said:

“Sadly, our research reveals that councils – including some who have expressed vocal support for renewables – are currently missing out on the chance to go green. A change would benefit the environment.”

Local authority leader Councillor Ron Woodley, Deputy Chair of the Local Government Association (LGA), has acknowledged that “energy is one of the largest controllable overheads in many council buildings”.

Within the LGA’s ‘Energising procurement’ document, it is argued that:

“Councils must look to gain greater control over their energy spend, to insulate them from wider trends and benefit from the huge opportunities presented by new energy technologies and business models.”

 

New opportunity

As we have previously reported, renewable energy is something that the wider public sector is investing in.

This challenge for local authorities creates an opportunity for energy suppliers working with the public sector.

If you are interested in winning contracts with local authorities, learn more about local authority tenders on our website.