Decarbonisation agenda left Offaly County Council in 'vulnerable financial position' says Chief Executive

THE publication of the Audit Report to members of Offaly County Council for the year ending December 2021, highlights the severe impact the Just Transition process and decarbonisation agenda has had on council coffers and the need to find a new source of funding in order to provide services into the future.

The report which was prepared by the Department of Housing, Local Government and Heritage (DHLGH) shows that while the financial impact of the closure of Shannonbridge peat fired electricity generation station was not as severe as expected in terms of a reduction in council revenue, it still represented a very significant shrinkage in the council's guaranteed annual income.

In December 2020 the ESB closed Shannonbridge power station after five decades in operation.

The report states that ''in recognition of this serious impact on the Council's commercial rates income, the Department provided €1.7m in 2021 and confirmed the securing of a further €1.7m for 2022 to help mitigate the continued effect of this closure.''

The auditors added that it was crucial to the council that a long-term solution to replace the income be found, in order for the council to be able to meet its obligations, and to ensure there was ''no negative impact on local services going forward.''

Responding Chief Executive Officer Anna Marie Delaney said: ''The acceleration of the national decarbonisation agenda has left Offaly County Council in a very vulnerable financial position due to the high level of dependency on peat harvesting and related industries right across the county.''

Ms Delaney said that  compensating measures were put in place for 2022 and communications were progressing with the DHLGH regarding future funding requirements. 

''A long term solution to this issue is required to ensure that the future financial stability of the Council is not put at risk due to the national decarbonisation agenda,'' she said.