Tag Archives: Business plan

AUDITORS SLAM ENERGY SHAMBLES

Even Bristol City Council’s own external auditors, BDO, have CONDEMNED the incompetent management of Bristol Energy, the council’s laughing stock energy reselling business that started trading in 2016 and has cost us about £25million so far.

“We have NOT seen evidence that the risks and potential financial losses of this investment were fully understood by the council when the investment was made in 2015 and 2016,” say the auditors before concluding, “Bristol Energy has NOT performed in line with its original 2015 business plan.”

This business plan, signed off by Nicki “Chocolate” Beardmore, the Reverend’s golden girl senior manager on £300k a year, said they would MAKE a 12% return on investment after 5 years and 35% after 10 years. Instead, the company reported a LOSS of £3million last year and £7million this year. With 110,000 customers and an initial investment of £15.3million by Bristol City Council, this means Bristolians have SPENT £139 for each customer and then Bristol Energy has generated a further LOSS of about £70 per customer. Top work!

BDO go on to conclude that a further hurriedly rewritten business plan in 2016, which admitted NO PROFITS were in sight, was also a lot of crap. “We have some concerns that the risks around the energy company, its governance arrangements and greater than expected losses were not understood fully by the Council in the early part of 2016/17.”

The auditors are now applauding the inevitable arrival of a team of CONSULTANTS from London to pick over the bones of this CORPSE and personally cash in on the shambles. “Independent Advisors and external consultants have been commissioned to provide advice on how the governance arrangements for the Group could be improved and financial and commercial advice to optimise value in the delivery of the Council’s investment and ensure that the Council achieves the best value for money outcome,” they claim.

When are we going to get a decent, decisive politician willing to pull the plug and shut down this miserable money pit shambles devised by idiots?

COUNCIL ENERGY FIRM ABOUT TO BELLYFLOP?

The smell of FAILURE hangs heavy in the air around BRISTOL ENERGY, Bristol City Council’s energy reselling business set-up at great expense with public money.

Despite the council’s best efforts to keep the financial performance of the year old company TOP SECRET, it’s widely known that the company’s original business plan has FAILED.

“The energy market is showing significant price volatility,” is the current form of words being deployed by council bosses for this deplorable state of affairs. While, behind CLOSED DOORS, large sums of our money are being conjured up and another business plan hastily cobbled together by a secret committee, safely hidden away from anyone who might call it like it really is.

We also understand that council bosses have been FORCED to set up an Audit and Remuneration Committee for the firm. Although many might say this kind of basic financial oversight committee should have been in place before the company began trading.

Strenuous efforts are also being made by the Mayor’s office to avoid consolidating the company accounts into the Council’s accounts for 2016/17. As a wholly-owned subsidiary of the council, it’s standard accounting practice that their wholly-owned energy company’s accounts are PUBLISHED alongside the council’s in its annual reports. Hardly ideal if you’re trying to hide losses into six or, even, seven figures from the public!

Meanwhile, the architect of this UNDERPERFORMING SHAMBLES, council Service Manager, Bill Edrich, has been instructed by the Rev Rees to ensure an “orderly exit strategy” forms part of the company’s new business plan.

Watch this space.