THE team behind a community-owned hydro- electric scheme in Oxford has been forced to fork out £35,000 after losing a dispute over costs.

Greenford Ltd, which constructed the £600,000 project at Osney Lock, sought £28,000 for extra work beyond the contract.

Osney Lock Hydro Ltd (OLH) – the team running the scheme – counter-claimed that the extra work, including the installation of steel pillars and a screen, was included in the original contract.

It also tried to claim £25,000 for loss of income from delays getting the power plant up and running.

But OLH lost the case and was forced to pay out more than £23,000 and a further £12,000 to the adjudicator to cover the costs of taking on the case.

Bob Hutton, of Greenford Ltd, said: “We are and remain a keen supporter of OLH, the scheme and ethos behind the project.

“Our concern is the frustration and wasted monies of the adjudication and the perceived lack of transparency for the shareholders and stakeholders.”

He confirmed that all the money had been paid in full.

The construction company claimed OLH owed it just over £28,000 for extra work carried out separate to the contract – a deal which saw OLH pay £660,626.

However OLH also claimed £25,000 compensation from Greenford for loss on income due to a delay in generating electricity. An incomplete fish pass meant that although the plant was commissioned in January last year there was no generation until May.

Following the adjudication, Osney Lock Hydro was forced to pay just over £23,000 to Greenford.

It also had to pay more than £12,000 – £250 an hour – to Nigel Davies, of Bloxham-based adjudicators Davies and Davies Associates, who dealt with the dispute.

Project director Saskya Huggins said: “Our members have been kept informed about the disputed issues and adjudication and were notified of the outcome back in November.

“The £23,000 represents part of the final retainer that was awaiting resolution and was part of the original budgeted spend.”

Ms Huggins said that the next phase of the project which will see the site open to the public would not be hindered by the extra costs and was always entirely separate.

She said: “We have always anticipated that we would carry out additional fundraising to deliver our broader educational project, opening up the site to the public and developing educational and interpretation resources.”

The director said that since the Archimedes screw began generating in the autumn it had generated 57MWh which will bring in more than £13,000 income.

The team expects the turbine to produce about 180MWh per year – enough to power 50 homes.

It is hoped the project will generate a total of £2m over 40 years for low-carbon projects in Oxford by selling energy to the national grid.