U.K. councils wasted nearly £2bn on ‘poor energy deals’

Hundreds of UK local councils have overspent almost £2 billion on energy in the past three years due to inefficient procurement, with three-quarters paying far more for electricity and gas than necessary.

Freedom of Information data shows huge disparities: Oxfordshire County Council paid an average of 44.1p per kWh for electricity last year, while St Albans Council paid just 22.2p.

If councils had matched the rates secured by the most efficient quarter, they could have collectively saved £1.7 billion. Cardiff Council had the largest missed savings—up to £8.7 million—despite cutting library hours and raising charges across public services to balance its budget.

Even beyond local government, energy inefficiency is stark; the Metropolitan Police could have cut £6.8 million from its bills by matching Greater Manchester Police’s rates.

The findings land at a time when local authorities across Britain face worsening financial pressures.

The Local Government Association forecasts a £2.3 billion funding deficit this year, prompting warnings that inflated energy costs are directly harming services and taxpayers. Box Power chief executive Corin Dalby said the data “raises important questions” about wider inefficiencies in public spending, arguing councils must adopt agile, market-savvy purchasing strategies rather than attributing high costs to building types or operational needs.

Councils including Oxfordshire and Cardiff defended their spending, but Dalby insists better procurement is both possible and urgently needed to prevent avoidable waste during a national funding crisis.

Image credit: Fre Sonneveld