Purpose

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

Decision

ROTHERHAM METROPOLITAN BOROUGH COUNCIL

 

RECORD OF OFFICER EXECUTIVE DECISION

 

Date of Decision:

18 June 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 - Resolved (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 July 2024 to 12 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 7% reduction in
the Ofgem price cap from 1 July 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:

One alternative pricing options
have been considered to achieve full cost recovery. This would have
meant a charge of 14.99 pence per kwh. This was rejected as it
meant the cost of an average District heating bill would be higher
than the average bill under the Ofgem price cap.

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 July 2024 to 12 pence per
kwh.
 
Signed by the Decision Maker  
 

Dated:
18 June 2024        
 
Name:
James Clark                    
Job
Title: Assistant Director of
Housing