How have recent energy price rises impacted on Transport for London's energy costs? What are the current and projected energy costs for TfL from now to 2025?

Transport for London (TfL) is the largest energy consumer in London and takes a careful approach to energy procurement, hedging its energy price up to 30 months ahead of delivery. Using this method, for the current financial year (April 2022 to March 2023) it has largely avoided the full extent of the increasing wholesale price of energy, with full year costs expected at £253m.

For April 2023 to March 2024, TfL has the Majority of its energy hedged; however, if wholesale energy prices remain at current levels TfL would expect to see an increase of approximately £42m.

For April 2024 to March 2025, TfL has a proportion of its energy hedged and, if wholesale prices remain at current levels, TfL would expect to see a further increase of approximately £44m.

TfL’s strategy is to move to 100% renewable energy by 2030. This will be achieved in large part through Power Purchase Agreements (the first of which is currently out for tender), which will provide the ability to hedge electricity prices for up to 15 years while also reducing carbon emissions.