Health boards and councils in northern Scotland fear their combined energy bill could be heading towards a staggering £80million in the coming year.
NHS Grampian alone expects its costs to soar by almost 69% to more than £14m, with its outlay on gas more than doubling.
A P&J investigation found the combined cost of powering local authority-run schools, care centres, sports facilities, libraries, offices and depots in the region could almost hit £60m after rocketing by 44% in 2022/23.
Aberdeen City and Aberdeenshire councils both face rises of more than £5m.
Highland is predicting it will have to spend almost £4.5m more than last year.
Council umbrella body Cosla warned it would mean even less money for stretched services.
Power bills are soaring across the country because of a squeeze on global gas supplies, caused by increased demand in Asia and a cold winter in Europe.
Ukraine invasion
The fall-out from Russia’s invasion of Ukraine is expected to make the situation even more unpredictable.
Responses to our freedom of information requests show the eight councils in the area – Aberdeen, Aberdeenshire, Moray, Highland, Orkney, Shetland, Western Isles and Argyll and Bute – anticipate their costs for electricity and gas rising from just more than £40m last year to about £58m in the coming financial year.
Many of the figures from individual councils are based on the amount earmarked for energy in recently-approved budgets for 2022/23.
More than £14m is due to be spent by NHS Grampian, up from £8.45m this year, with rises also expected by NHS Orkney and NHS Shetland.
NHS Highland was the only authority in the area to refuse to release its forecast, branding the data “commercially sensitive”, but it is likely to take the total among councils and health boards in the north and north-east to close to £80m.
Scottish Labour’s energy spokesman Colin Smyth said: “Soaring energy bills are piling pressure on stretched council budgets, just as they are for households.
‘Extortionate increases’
“Councils can ill-afford these extortionate increases after the SNP have cut their funding to the bone.
“The UK and Scottish governments have both been missing in action as households, businesses and councils alike are hammered by the growing energy cost crisis.”
A spokeswoman for the Convention of Scottish Local Authorities said: “Councils will face very real pressures next year as a result of the settlement for 2022/23, something that Cosla has continued to raise with Scottish Government.
“As large users of energy – in schools, care homes, leisure centres, depots, etc – rising energy costs, on top of other pressures including pay, inflation, supplies and ongoing loss of income, will ultimately mean less money for services.
“Councils will also be facing additional cost pressures due to the fact that commissioned services will also have to meet these significant energy increases making these services more expensive.”
An NHS Grampian spokeswoman said: “The contracts used by NHS Grampian for electricity and gas are negotiated on a nationwide basis by Scottish Procurement on behalf of public sector bodies in Scotland.”
Increased demand
Highland Council said services would come under pressure during the squeeze.
“These energy price increases are significantly impacting individuals and families right across the Highlands resulting in increased demand for a range of council services,” it said.
The authority added: “The increase in energy costs will feed through the economy and affect both our service providers and suppliers.
“Some economists are predicting an inflation rate as high as around 8%.
“Exactly how that affects us and how much is down to increased energy prices is yet to be determined.”
Aberdeen City Council said: “The council is part of the Scottish Procurement group which negotiates and agrees advance purchase prices for gas and electricity for a range of organisations across the Scottish public sector.
“Scottish Procurement routinely bulk buy in advance a large proportion of the anticipated energy requirements identified by the Scottish Energy Officers Network for future seasons, leaving a limited price exposure on the remaining gas and electricity.
“This is bought on ‘day market’ prices, with the decision on when to buy set out by Scottish Procurement’s risk management committee.
“The council would manage this within in-year corporate contingencies.”