Lowering energy costs to residents ‘could hit budgets’

19 November 2008

Technical officers fear that actions by ministers and the regulator to drive down consumer energy bills following reductions in wholesale prices could lead to continuing hikes for un-metered electricity.

Local highway authorities are expecting a 40% rise in the cost of electricity supplied for streetlighting for contracts re-let now for next year, following a number of similarly-sized, successive annual rises. A county council can now spend one-tenth of its maintenance budget on electricity.

Energy and climate change secretary, Ed Miliband, has pressed the six large energy providers to pass on savings or he will consider legislation.

The regulator Ofgem has been consulting on measures to make the energy supply markets work better for all consumers, but these proposals focused on supplies to households, according to a spokeswoman.

Matt Williams, of the UK Lighting Board, said: ‘While we would welcome a reduction in the bills for residents, we’d be apprehensive that would mean costs for councils remained high.’

The UK Lighting Board had ‘a positive relationship with Ofgem’, and the regulator understood the situation local authorities were in, said Williams, but ‘action is still needed on these cost increases’.

Matthew Lugg, chair of the UK Roads Board, recently suggested that local highway authorities might have to switch off one in three streetlights between midnight and 5am in response to the continuing cost rises (Surveyor, 16 October).

But Williams, who is at Dudley Metropolitan Borough Council, said that ‘in an urban environment, that’s not an option’.

‘We’ve a duty of care to our residents. What if there was an assault or a rape in an area where we’ve switched off lights?’

The UK Lighting Board is promoting ‘invest to save’ measures instead of switching off lights.

A more detailed version of the guidance on ways of saving money by measures such as readjusting lighting levels, launched two years ago, is due to be published soon.

Register now for full access

Register just once to get unrestricted, real-time coverage of the issues and challenges facing UK transport and highways engineers.

Full website content includes the latest news, exclusive commentary from leading industry figures and detailed topical analysis of the highways, transportation, environment and place-shaping sectors. Use the link below to register your details for full, free access.

Already a registered? Login