Nineteen councils in Derbyshire and Nottinghamshire last year secured provisional approval for a£198,000 grant from the Energy Savings Trust to form an energy service company (LGC, 29 August 1997).
Following counsel's advice, Nottinghamshire and Derbyshire Local Authorities Energy Partnership decided it would be unable to set up the company in time to meet a 31 March deadline for formal approval of the grant.
North East Derbyshire DC property service manager John Farrell said the complexities of setting up a legally watertight company would take them past the deadline.
The partnership is now exploring other ways of raising funding for the scheme. Joint chairman Derek Green said: 'We're not dead yet; we will be lobbying hard to keep the momentum going.'