This report recommends to Cabinet and seeks approval that the Joint Agreement be varied to update the formulae for the distribution of the accumulated surplus each year.

The cabinet member finance, corporate services and planning introduced the item. She explained the role of West Mercia Energy and the reasons for recommending the amendment to the formula. Despite the revised formula being slightly to the detriment of Herefordshire council, it would be a better way of distributing any surplus in the long term and protected each of the member councils from changes in the way other member councils engaged with WME in the future.

Group leaders were supportive of the proposed changes.

It was unanimously resolved that:

a)     The West Mercia Energy Joint Agreement be varied to update the formulae for the distribution of the accumulated surplus each year; and

b)     The interim Director for Economy and Place be authorised, following consultation with the Solicitor to the Council and S151 Officer to finalise and execute the variation.