New power deal to save the Edinburgh Council £6m

THE city council's annual electricity bill is set to fall by £6 million after a new deal was successfully struck.

A procurement exercise has seen the electricity supply contract awarded to Scottish Power and Scottish and Southern Electricity.

The previous contract, which was with Scottish and Southern, was awarded at the peak time of the market two years ago when the oil price was at a high.

The new 26-month deal will see the electricity price fixed up to next March, and it is estimated that the 16.25m contract will save the city 3m in the first six months, and somewhere in the region of 3.4m in 2011/12.