The West Mercia Energy Joint Committee met on Friday, 25 September 2026, to approve the final Statement of Accounts for 2025/26 and endorse the external audit findings. The committee also approved the distribution of accumulated surplus funds and updated key policies, including the Anti-Slavery and Human Trafficking Policy and Standing Orders.

Statement of Accounts and Annual Governance Statement

The committee approved the finalised Statement of Accounts for the year ending 31 March 2026, which were signed by the Chairman, Councillor Peter Stoddart, and the Treasurer, Duncan Whitfield. The Annual Governance Statement for the same period was noted. The Statement of Accounts reported a net operating surplus of £2.192 million for the year, an increase from the previous year, with net assets standing at just under £4 million. The report highlighted strong customer retention and successful system enhancements, including a new trading platform and improved KPI reporting.

External Audit Findings

WR Partners, the external auditors, presented their audit findings for the 2025/26 financial year. They confirmed that their audit work was performed in line with the plan and anticipated issuing an unqualified audit opinion. Key audit findings indicated no significant issues with fraud, management override of controls, or income recognition. The auditors agreed with management's assessment that West Mercia Energy is a going concern, supported by a robust business plan. A single control recommendation was made regarding the need for a formal Service Level Agreement (SLA) with Shropshire Council for procurement services, which management confirmed was in progress.

Distribution of Surplus

The committee approved the retention of £1.594 million of the accumulated surplus for capital at risk and general reserves. The remaining £2.283 million was approved for distribution to the four member authorities: Herefordshire Council, Shropshire Council, Telford & Wrekin Council, and Worcestershire County Council, in accordance with the Joint Agreement. This distribution represents the second-highest payout in the committee's 13-year history.

Risk Management Update

The committee reviewed the risk management update, which identified one medium risk: the potential breach of capital at risk levels due to market spikes. This risk, with an exceptional likelihood and high impact, remains on the register. The committee noted the reassurance provided by the clear ownership of risks and the ongoing review process.

Anti-Slavery and Human Trafficking Policy

The updated West Mercia Energy (WME) Anti-Slavery and Human Trafficking Policy was approved by the committee. This policy, first approved in 2017, has been revised following an assessment using the government's modern slavery assessment tool, incorporating improvements to strengthen its provisions. The policy reiterates WME's zero-tolerance approach to modern slavery and human trafficking, committing to ethical business dealings and robust internal controls.

Standing Orders

The committee approved the updated WME Standing Orders. Key changes include the formal definition of the WME Procurement Advisor, updated procurement regulation thresholds, enhanced provisions for modern slavery, and a reflection of the transition to WME's own Delta platform for procurement tenders, moving away from the previous reliance on Shropshire Council's platform.

Update on Business Plan and Trading Performance

The committee approved the recommendations contained within an exempt report regarding the Business Plan and Trading Performance for 2026/27. This report provided an update on the business's performance and future plans, with specific details being confidential.