To receive apologies for absence.

Apologies for absence were received from Councillor Carter, Hardman (Substitute Councillor May), Macey and Smith.

It was reported that Councillor Nutting would be joining the meeting late and it was agreed that Councillor Evans would chair the meeting until he arrived. 

To receive the minutes of the Joint Committee meeting held on 26^th February 2019

Copy attached marked 2.

That the Minutes of the West Mercia Energy Joint Committee held on 26^th September 2019 be approved as a correct record and signed by the Chairman. 

RESOLVED:

That the Minutes of the West Mercia Energy Joint Committee held on 26^th February 2019 be approved as a correct record and signed by the Chairman. 

To receive any question or petitions from the public, notice of which has been given in accordance with Procedure Rule 14.  The deadline for this meeting is 10.00 a.m. on Friday, 20^th September 2019. 

There were no public questions or petitions.

Members are reminded that they must not participate in the discussion or voting on any matter in which they have a Disclosable Pecuniary Interest and should leave the room prior to the commencement of the debate.

Members were reminded that they must not participate in the discussion or voting on any matter in which they had a Disclosable Pecuniary Interest and should leave the room prior to the commencement of the debate.

Councillor Davies stated that she worked for Wye Valley NHS Trust, but had no pecuniary interest to disclose. 

The Director of West Mercia Energy will provide a verbal update in line with the West Mercia Energy Standing Orders. 

That the update on supplier contracts be noted.

In accordance with Standing Orders, Mr N. Evans, Director of West Mercia Energy provided an update on Supplier Contracts.

With regards to the supplier of petroleum fuels, the Director reported that in accordance with Standing Order 5.3 he would be entering into post tender negotiations to clarify certain elements of their bid.

RESOLVED:

That the update on supplier contracts be noted.

Report of the Treasurer.

Contact: James Walton (01743 258915)

1.      That the Letter of Representation be noted and signed by the Chairman and submitted by the Treasurer.

2.      That the finalised Statement of Accounts 2018/19 be approved and signed by the Chairman and the Treasurer.

3.      That the Annual Governance Statement 2018/19 be approved.

Mr J. Walton, Treasurer (WME) presented the Letter of Representation, the Statement of Accounts 2018/19 and the Annual Governance Statement 2018/19 for the West Mercia Energy Joint Committee (copy attached to the signed minutes). 

RESOLVED:

1.         That the Letter of Representation be noted and signed by the Chairman and submitted by the Treasurer.

2.           That the finalised Statement of Accounts 2018/19 be approved and signed by the Chairman and the Treasurer.

          3.           That the Annual Governance Statement 2018/19 be approved.

Report of the External Auditor.

Contact: Richard Percival (0121 212 4000)

That the West Mercia Energy Joint Committee Audit Findings Report 2018/19 be noted.

Mr R. Percival and Mr D. Rowley (External Auditors – Grant Thornton)  presented the West Mercia Energy Joint Committee Audit Findings Report 2018/19 (copy attached to the signed minutes). 

          RESOLVED:

That the West Mercia Energy Joint Committee Audit Findings Report 2018/19 be noted.

Report of the Audit Services Manager.

Contact: Ceri Pilawski (01743 257739)

1.      That performanceagainst the AuditPlan for the year ended 31 March 2019 be endorsed.

2.      To note that the systemof governance, risk managementandinternal controlis operatingeffectivelyand canberelied upon when consideringthe AnnualGovernanceStatementfor2018/19.

3.      That the Head of Audit’spositiveyear end opiniononWest Mercia Energy’s governance, risk managementandinternal control environmentfor2018/19on the basisofthe work undertaken and managementresponses received be noted.

C. Pilawski, Head of Audit introduced Internal Audit Annual report 2016/17 (copy attached to the signed minutes).

         RESOLVED:

1.           That performanceagainst the AuditPlan for the year ended 31 March 2019 be endorsed.

2.           To note that the systemof governance, risk managementandinternal controlis operatingeffectivelyand canberelied upon when consideringthe AnnualGovernanceStatementfor2018/19.

3.           That the Head of Audit’spositiveyear end opiniononWest Mercia Energy’s governance, risk managementandinternal control environmentfor2018/19on the basisofthe work undertaken and managementresponses received be noted.

Report of the Treasurer.

Contact: James Walton (01743 258915)

1.      That the retention of accumulated surplus of £0.717 million be approved.

2.      That the distribution of accumulated surplus of £0.704 million, in accordance with the provisions of the Joint Agreement, be approved.

The Treasurer presented the report which recommended the level of distribution of surplus held at 31 March 2019 to the Member Authorities (copy attached to the signed minutes).

In response to a question the Treasurer outlined how the surplus was calculated and that this formula was set out in the WME Joint Agreement. 

In response to a question relating to incentives for energy efficiency, the Treasurer explained that while it could be possible to incorporate an incentivisation scheme into the surplus calculation, it would need careful consideration and the implications would need exploring.  The Treasurer suggested an alternative option where the distribution received from WME by the Member Authorities could be ring fenced to support energy efficiency projects and this would be considered further. 

          RESOLVED:

          1.      That the retention of accumulated surplus of £0.717 million be approved.

          2.      That the distribution of accumulated surplus of £0.704 million, in accordance with the provisions of the Joint Agreement, be approved.

Report of the Treasurer.

Contact: James Walton (01743 258915)

1.         That a proposal to the four WME Owning Authorities of Shropshire Council, Telford & Wrekin Council, Herefordshire Council and Worcestershire County Council for them to take direct responsibility for the pension deficit liability relating to former WMS employees (including Compensatory Added Years Benefits) and WME with effect from 1^st April 2020 be agreed; and

2.         That, subject to the formal decisions to be taken by the four WME Owning Authorities in recommendation 2.1 of the report, the removal of the pension deficit liability relating to former WMS employees (including Compensatory Added Years Benefits) and WME from the WME Balance Sheet from 1 April 2020 be agreed.

The Treasurer presented the report which detailed proposals for the treatment of the West Mercia Supplies pension deficit (copy attached to the signed minutes).

The Treasurer outlined the history and the options that had been considered for the benefit of new members of the Committee.  It was explained that the WME Risk Register had identified a potential risk in bidding for future contracts while carrying the liability for the former WMS employees on its balance sheet as potential customers would consider the financial position of WME in assessing their bid.  The proposal that was being considered would result in the removal of the WMS Pension Liability from the West Mercia Energy balance sheet by transferring the responsibility for the liability to the four owning authorities. 

Councillor May joined the meeting at this point. 

          The Treasurer stressed that in order to achieve implementation by April 2020, all four authorities had to agree on the same option for it to be taken forward and that he would make this clear in his report to the respective Cabinets. 

          Councillor Peter Nutting joined the meeting at this point

            RESOLVED:

1.           That a proposal to the four WME Owning Authorities of Shropshire Council, Telford & Wrekin Council, Herefordshire Council and Worcestershire County Council for them to take direct responsibility for the pension deficit liability relating to former WMS employees (including Compensatory Added Years Benefits) and WME with effect from 1^st April 2020 be agreed; and

2.           That, subject to the formal decisions to be taken by the four WME Owning Authorities in recommendation 2.1 of the report, the removal of the pension deficit liability relating to former WMS employees (including Compensatory Added Years Benefits) and WME from the WME Balance Sheet from 1 April 2020 be agreed.

To consider a resolution under Section 100 (A) of the Local Government Act 1972 that the proceedings in relation to the following items shall not be conducted in public on the grounds that they involve the likely disclosure of exempt information as defined by the provisions of Schedule 12A of the Act.

RESOLVED:

That under Section 100(A)(A4) of the Local Government Act 1972, the public be excluded during the consideration of the following items of business on the grounds that they might involve the likely disclosure of exempt information as defined in Schedule 12(A) of the Act.

To approve the exempt Minutes of the meeting held on 26^th February 2019.

Contact: Emily Marshall (01743 257717)

RESOLVED:

That the Exempt Minutes of the meeting held on 26^th February 2019 be approved as a correct record. 

Exempt report of the Director of West Mercia Energy.

This report presents to the Joint Committee the minutes of the Flexible Energy Advisory Panel meetings which have been approved by the Panel since the last Joint Committee. Business areas discussed at these meetings include a review of the WME energy trading positions, financial results, pricing, portfolio changes, business development activity and supplier contract updates.

Contact: Nigel Evans (0333101 4353)

That the recommendation contained within the exempt report be approved.

The Director presented an exempt report (copy attached to the signed exempt minutes), which presented the exempt minutes of the Flexible Energy Management/Advisory Panel meetings that had been held since the last meeting of the Joint Committee.

          RESOLVED:

That the recommendation contained within the exempt report be approved.

Exempt report of the Director of West Mercia Energy.

The purpose of this report is for the Joint Committee to received details of all medium and high risks in accordance with the WME Risk Management Strategy.

Contact: Nigel Evans (0333101 4353)

That the recommendation contained within the exempt report be approved.

The Director presented an exempt report (copy attached to the signed exempt minutes), which provided an update on risk management.

          RESOLVED:

That the recommendation contained within the exempt report be approved.

Report of the Director of West Mercia Energy.

The purpose of this report is to present to the Joint Committee an update on the delivery of the WME Annual Business Plan and Budget 2019/20. This will include a review of the financial results, an energy trading update, customer contracts & business development activity and supplier contracts

The report will also include recommendations regarding customer acquisitions and supply contracts.

Contact: Nigel Evans (0333101 4353)

That the recommendation contained within the exempt report be approved.

The Director presented an exempt report (copy attached to the signed exempt minutes), which provided an update on the West Mercia Energy Annual Business Plan and Budget 2019/20.

RESOLVED:

That the recommendation contained within the exempt report be approved.

Report of the Director of West Mercia Energy.

The purpose of this report is to present to the Joint Committee options regarding the development of enhanced arrangements for fixed term energy contracts.

Contact: Nigel Evans (0333101 4353)

That the recommendation contained within the exempt report be approved.

The Director presented an exempt report (copy attached to the signed exempt minutes), which detailed the development of enhanced arrangements for fixed term energy supply contracts.

          RESOLVED:

That the recommendation contained within the exempt report be approved.

It is proposed that the next meeting of the West Mercia Energy Joint Committee will be held on Tuesday 25^th February 2020 at 10.00 a.m. in the Shrewsbury Room, Shirehall.

It was noted that the next meeting would take place on Tuesday, 25^th February 2020 at 10.00 a.m. in the Shrewsbury Room, Shirehall, Shrewsbury.