Derry City and Strabane District Council is projecting £1.5m in additional energy costs this year, the local authority has warned.
The council is projecting an additional cost of up to £980,000 for this financial year for the electricity, gas and oil costs associated with its nine leisure centres.
The Northern Ireland local authority also estimates an additional cost of up to £560,000 to pay for the fuel needed to run its fleet of vehicles.
A spokesperson for the council commented: ‘Whilst the council has currently fully mitigated these challenges in the current 2022/23 year through contingency reserves and expenditure control, the issues represent recurrent financial pressures which pose an unprecedented and extremely challenging position for council's 23/24 rates process.
‘The council has established a Finance Working Group where Elected Members are examining all budgets in detail and reviewing all possible saving opportunities in advance of the council striking the rate for 2023/24.’
