Another delay over repayment of £23m loan to city council

The repayment of a £23 million loan to Peterborough City Council for the installation of solar panels has been delayed again.

The sum was due to have been repaid 18 months ago by social enterprise Empower Community Management LLP, but another extension of up to six months has now been agreed.

The council remains confident the loan will be repaid in full and insists taxpayers will not lose out as it can take over the profitable solar panel schemes should the money not be repaid.

However, concerns have previously been voiced that the council does not have the expertise to run the projects, should it need to.

The money was loaned by thecounciltoEmpowerback in December 2014 for solar panels to be placed on 7,763 housing association homes across the country, with 426 in Peterborough. It was expected Empower would find a buyer who would pay back the £23 million loan and take on the solar panel schemes, but this has yet to happen.

The council has now agreed to extend the repayment date on a month to month basis for up to six months. The authority said it is “actively exploring” seven Expressions of Interest it has received from major refinancing organisations.

Empower, which has declined to comment when previously contacted by the Peterborough Telegraph, is currently paying interest on the loan on top of a £10,000 monthly fee to the council.

The authority said it has received a net return of more £2 million in the last four years from the loan.