The West Mercia Energy Joint Committee met on Friday, 25 September 2026, to approve the Statement of Accounts for 2025/26, endorse the external audit findings, and approve the distribution of accumulated surplus funds. The committee also approved an updated Anti-Slavery and Human Trafficking Policy and revised Standing Orders.

Statement of Accounts and Annual Governance Statement

The committee approved the finalised Statement of Accounts for the year ending 31 March 2026, which will be signed by the Chairman and Treasurer. The Annual Governance Statement for the same period was noted. The Statement of Accounts detailed a net operating surplus of £2.192 million for the year, an increase from the previous year's £1.969 million. Turnover had decreased, which was viewed positively as it reflected lower delivered prices to customers. Customer retention remained strong, and the organisation reported continued growth in the education sector, with Liverpool City Council joining as a new customer. System enhancements were introduced, including a new trading platform and improved KPI reporting. The organisation's financial position was described as strong, with a robust business plan for 2026/27 and positive cash positions.

External Audit Findings

The committee considered and endorsed the audit findings report for 2025/26 presented by WR Partners. The auditors indicated that they anticipated issuing an unmodified audit opinion, subject to the resolution of outstanding queries. The audit work was substantially complete, with no matters identified that would require a modification to the audit opinion. The auditors confirmed that management's use of the going concern basis for accounting was reasonable, supported by budgets, forecasts, and a long-term business plan. Key factors considered in the going concern assessment included customer retention, new contract wins, ongoing energy reductions, trading conditions, and weather patterns.

Distribution of Surplus

The committee approved the retention of £1.594 million of the accumulated surplus and the distribution of £2.283 million to the Member Authorities, in accordance with the Joint Agreement. The retained surplus includes £1.494 million for Capital at Risk for gas and electricity trading activities and £100,000 for general reserves. The accumulated surplus at 31 March 2026 was £3.877 million. The distribution formula for Member Authorities was outlined, taking into account their gross profit contribution, a share of non-Member Authority profits, expenditure, and movements in retention sums and the General Fund.

Risk Management Update

The committee endorsed the medium risks presented in the Risk Management Update. The report highlighted one ongoing medium risk: Breach of Capital at Risk levels above 10% of Review Point level (as a result of market spike). This risk was assessed as having a likelihood of 1 and an impact of 5, indicating that a breach would only occur in exceptional circumstances but could have a major impact. No high risks were identified. The WME Risk Management Strategy was reviewed and endorsed annually, with the risk register formally reviewed by management twice a year.

Anti-Slavery and Human Trafficking Policy

The West Mercia Energy Joint Committee approved the updated WME Anti-Slavery and Human Trafficking Policy. The policy reiterates a zero-tolerance approach to modern slavery and commits to ethical business dealings and robust systems to prevent its occurrence within the organisation and its supply chains. The update followed a review of the Government's Modern Slavery Assessment, which identified areas for improvement. The policy outlines WME's commitment to legal adherence, worker freedoms, and the prohibition of child labour, discrimination, and exploitative practices. It also details responsibilities for policy implementation and compliance, with breaches potentially leading to disciplinary action or termination of business relationships.

Standing Orders

The committee approved the updated WME Standing Orders. These revisions incorporate changes related to the Procurement Act 2023, formally define the WME Procurement Advisor, update procurement regulation thresholds, enhance provisions for modern slavery, and reflect the use of WME's own platform for tenders. The Standing Orders aim to ensure compliance with legal requirements, achieve value for money, promote transparency, and protect officers. They outline procedures for procurement processes, including requirements for advertising, tendering, evaluation, and contract award, with specific attention to the principles of fairness, non-discrimination, and value for money. The updated Standing Orders also address the handling of below-threshold contracts and the exclusion of press and public for certain agenda items.