Report of the Director of West Mercia Energy

Contact: Nigel Evans

That the medium risks presented be endorsed.

Nigel Evans, Director WME, presented the report which provided an update on risk management noting that the risk register was reviewed formally twice a year. It was reported that following the current review two risks previously considered as medium had been downgraded to low and the following four risks had been categorized as medium:

•   The volatility in the energy markets leading to uncompetitive prices.

•   Breaching of the Capital of Risk from trading activity.

•   Risk relating to Central Government policy or regulation.

•   Dealing with suppliers that have ownership or investment in Russia or Belarus.

In response to questions from members Nigel Evans explained that WME’s trading strategy had been developed over a number of years following initial work with consultants and he was aware of financial concerns in the education sector.

RESOLVED:

That the medium risks presented be endorsed.