Energy prices to cost millions to Scottish authorities

Rising energy prices are going to cost Scottish authorities in millions of pounds during next year. Cosla, a local government body, has said that downturn of housing market, coupled with high energy costs  will require most of Scottish councils to save up to 8 million pounds to pay their energy bills.

Scottish government accepted the situation but said that the solution has to come from Westminster and not from Holyrood.

Aberdeenshire Council is likely to pay £804,000 more next year as compared to the current financial year. Some departments can afford to under spend while others already have a larger sum earmarked for next year. For example, education and learning services are likely to spend a million pounds extra next year for transportation of special needs students whose number has already seen a big rise. The council expects its fuel bill for escort provision to go up by £300,000 than budgeted. Heating and lighting of council buildings, including schools, is going to cost a million ponds more than planned and up to three million pounds more next year.

A few councils have safeguarded themselves from high energy bills. Kinross and Perth council have a fixed price contract towards the electricity bill up to the financial year 2010-11. So they will be somewhat shielded from recent hikes.  The council has also drawn out plans on reducing the energy consumption by 5 percent per year.

Angus council is likely to face budgetary constraints to tune of five to six million pounds in the current year itself due to high energy bills.