Investing in electricity

Investing in electricity: Reducing costs and increasing income for local authorities

Whilst there are complexities in the UK energy markets, APSE Energy views it as essential that local councils have a role in energy generation and supply, allowing them to alleviate fuel poverty, contribute to carbon reduction and make the most of local authority assets.

This new research from APSE Energy explores these issues through the prism of electricity and explores how local councils can make better use of electricity, including green electricity, whilst also generating an effective financial return for local councils and local residents.

The report considers the electricity market in the UK and the legal framework which separates electricity generation, distribution and supply. It finds that, in spite of inherent difficulties in electricity regulation, local authorities can do much more to generate their own green electricity, support cost-effective supplies to local areas and create new income streams to offset council budget reductions. A further objective that local authorities should consider is to work together to supply energy to the capacity market and gain significant income as a result.

The report recommends that:

• Councils build investment intentions into their energy strategy to provide a coherent framework for energy supplies and asset management
• Councils fully utilise available exemptions to electricity licencing regulations to maximise the benefits of local electricity production, supply and distribution
• Councils should make sure that asset information is accurate so that when investment decisions are prioritised, the information about the energy element of that investment accurately informs the process
• Councils should take action to reduce the amount of electricity used – most local authorities have acted on the easy-to-achieve savings, but there is a lot more to be done in terms of energy efficiency
• Councils should engage councillors and finance colleagues. This ensures that everyone is up to date with the latest developments in the energy agenda, such as energy supply companies, batteries and storage options, and the work of other local authorities
• Councils should think about how new developments might be applicable to councils organisationally; earning revenue, and bringing economic and social value to local areas

This report is only available for APSE Energy members, and is password protected. For more information, email Phil Brennan, Head of APSE Energy.

View report (pdf)