Purpose

Revise the unit price charged
for District heating from 1 April 2024.

Decision

ROTHERHAM METROPOLITAN BOROUGH COUNCIL

 

RECORD OF OFFICER EXECUTIVE DECISION

 

Date of Decision:

18 March 2024

Title:

Revision to District Heating
Pricing for 2024-25
 

Decision Maker:
(Including Job
Title)

James Clark, Assistant Director
of Housing
 
 

Details of Specific Cabinet
Delegation
or Delegation contained in the
relevant Sub-Scheme of Delegation.
 

Council agreed on 28 February
2024, minute number 104(8), that the decision to reduce the price
of District Heating Charges further during 2024-25 be delegated to
the Assistant Director of Housing in conjunction with the Assistant
Director of Financial Services following consultation with the
Cabinet Member for Housing. The delegation would only be used to
respond to a change in Government policy or a significant change in
the Ofgem price cap that has the effect of necessitating a lower
unit price.

Decision:

Revise the unit price charged
for District heating from 1 April 2024 to 12.86 pence per
kwh.
 
Note that further reductions
may be necessary if the Ofgem price cap for subsequent quarters
matches energy market forecasts.
 

Reasons for the
Decision:

There will be a 12% reduction
in the Ofgem price cap from 1 April 2024 and energy market
forecasts predict further reductions in the cost of energy until
December 2024. The Council has committed to ensuring that the
average bill for residents on District heating match’s the
average bill of a resident with gas and benefiting from the Ofgem
price cap.
 

Details of alternative
options considered and rejected:

Two alternative pricing options
have been considered:

1.   
A revised price of 11.66 pence per kwh was
considered to negate the need for further price reduction. This was
based on an average of the Ofgem price cap for Q1 2024-25 and
market forecasts for Q2 & 3 2024-25.  This option was rejected as it took the average
District heating bill to less than an average gas bill under the
Ofgem price cap for Q1 2024-25 and relied on unofficial
forecasts.

2.   
A revised price of 10.94 pence per kwh. This was
based on the lowest market forecast for the period Q1 to Q3
2024-25. This option was rejected as it took the average District
heating bill to less than an average gas bill under the Ofgem price
cap for Q1 2024-25 and relied on unofficial forecasts.
 

Conflicts of interest
declared by any Cabinet Member consulted by the decision maker
which relates to the decision:

N/a

Dispensations
Granted:
(If any)

N/a

Reports or parts of
reports considered

The report of the Strategic Director of Adult care, Housing and
Public Health, Ian Spicer – HRA
Business Plan, Rent Setting and Service Charges 2024-25

 
I certify that this is a true
record of the executive decision to revise the unit price charged
for District heating from 1 April 2024 to 12.86 pence per
kwh.
 
 

Signed by the Decision Maker  
Dated:18 March 2024       
 
Name:
Ian Spicer                        
Job
Title: Strategic Director, Adult Care,
Housing & Public Health