Increased Energy Costs

Part of 1. Questions to the Minister for Finance and Local Government – in the Senedd at 1:57 pm on 26 October 2022.

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Photo of Rebecca Evans Rebecca Evans Labour 1:57, 26 October 2022

I join you in also thanking Mike Hedges for facilitating the discussion. I can tell that it was a very impactful discussion, based not only on the order paper for questions today; I see that those discussions that you've had with local government have really had an impact in terms of giving you a real idea of the kinds of pressures that they're under and the holes in their budgets that they are looking to deal with. I know that you're particularly concerned about the cost of energy, and we are working really closely with local authorities. Local authorities themselves this financial year are in a better position in the sense that most of them purchase their energy from the Crown Commercial Service, so they're protected in this financial year from the volatile global energy prices. But what we're doing at the moment is assessing the impact on prices and budgets for 2023-24, and our Welsh Government procurement professionals are currently working with suppliers and the Crown Commercial Service to support local authorities so that they can plan at least with a level of confidence in terms of the numbers for the next year. 

As many of the local authorities' contracts have already been agreed, I think that we're less worried, as I say, this year, but our real concerns are for next year, and this is why it's really important that the UK Government's energy review concludes rapidly, so that we can provide that confidence, but also that it really does consider the impact on local government and on the third sector, as you've referred to, as well, in terms of allowing them to keep on providing the vital services that they do. I'm sure we've all had discussions about the cost of just keeping the lights on in schools, for example, which has gone through the roof for future years. So, I know that those discussions are live, and just to reassure you that our procurement team are involved in that.