City mitigates energy crisis for Barbican residents by buying in electricity a year early

City mitigates energy crisis for Barbican residents by buying in electricity a year early
Image source Pavel Proshin on Unsplash

Barbican residents are likely to avoid paying as much as other Londoners during the energy crisis as the City of London buys its electricity a year in advance.

Residents will see an increase in their energy bills as the estate’s famous underfloor heating is turned on in October but it will be a fraction of the expected price other Londoners will face as energy prices soar.

The City of London buys 68 percent of the Barbican’s electricity a year in advance, meaning its residents will pay lower prices.

Electricity prices are 700 times the price they were in December 2021, according to a City of London Corporation report.

“Although it is expected that energy costs will continue to rise the forward purchase arrangements put in place by the City should mitigate the increases,” it read.

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The City is now looking to buy next year’s supply on October 1 while prices are capped and will then divide the costs between leaseholders.

It has also signed a 15-year agreement with South Farm Solar to buy approximately 54,347 MWh per year of electricity.

The huge electricity deal will cover 63 percent of the Local Authority’s electricity use – and will cover all Barbican homes once it is set up.

A City of London report said: “While we expect there to be a rise in electricity costs for residents at the Barbican, the introduction of the Power Purchase Agreement (PPA) will go far to mitigate the effects.

“However, this remains delayed, and uncertainty remains on the final date it will become operational. If as expected, the PPA is operating by December, the effect is likely to be minimal, whilst the hedged position on electricity purchases to date, will also help in the event further volume is needed to cover the gap from the PPA’s delayed start.”

Other costs on the famous estate have shot up in the last year due to bills and increased repair and maintenance costs.

Repair works on the outside of the estate have increased by 74.64pc over the last 12 months. The City of London has also spent £1,368,000 fixing leaky roofs, balconies and window frames across the Barbican.

The City said energy costs across the estate “have risen significantly and are rightly of great concern to residents.”

Heating bills have risen by over 35 per cent compared to last year’s comparison between 2021 and 2022 and residents at Speed House could see the price of heating double in the next year.

In total, service charge and repair works at the Barbican cost £11,528,280 from the year 2021 to 2022 – 19.43pc higher than the previous year.

The cost of electricity has also risen 13 percent after an increase in prices in October 2021.

A City of London report said: “The main reasons for the increase are increased energy costs, particularly for heating and increased repairs and maintenance costs. This has led to significant additional charges for leaseholders, particularly in Speed House and Ben Jonson House.”

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