Agenda item

Cabinet Portfolio:                 Jobs and the Local Economy

Strategic Directorate:           Regeneration and Environment

Consideration was given to a report which was submitted for pre-decision scrutiny ahead the Cabinet meeting scheduled to take place on 16 September 2019 which sought approval to accept a tender to establish a Community Energy Switching Scheme which would have the potential save an average three bedroom semi-detached household up to £300 per year.

It was reported that an open tender process had been conducted following the Cabinet decision in December 2018 (minute 79 refers) and two submitted responses had met all of the mandatory requirements. The tenders had been evaluated and officers had recommended the development of a community energy switching scheme in partnership with a bidder who had submitted a compliant bid that would deliver against the specification.

Given the volatility of the energy market and uncertainty arising from the anticipated withdrawal of the UK from the European Union in October 2019, Members sought to understand what plans were in place to overcome any financial or reputational risk arising from the failure of the company or failure of supply. In response, it was confirmed that a guarantee had been provided by the owners of the successful bidder in respect of its continued operation. With regard to the impact on households, it was confirmed that customers would reverse back to standard tariffs. Overall, there was assurance from the due diligence work that had taken place to date.

Following on, Members sought to understand how the company operated in respect of the use of smart meters and access to engineers. In response, it was confirmed that smart meters were in use and would be installed as soon as customers signed up. Whilst there was an obligatory 28 days in which to install the smart meter, the provider’s level of performance ensured that these were in place within seven days.

Clarification was sought as to whether conversations had taken place with Housing Services to establish what could be done to use this scheme for District Heating in future. In response, it was explained that whilst electricity supply would be possible, it would not be possible for those properties in the District Heating Scheme to use the Community Energy Switching Scheme, as the energy supplied was purchased by the authority on an industrial basis and was therefore on a different pricing structure.

Members sought to understand the approach that would be adopted to market the scheme to ensure that it was viable for the provider and the authority. In response, it was confirmed that the successful bidder had submitted a marketing plan with their tender documents and the Communications and Marketing Team, along with the Neighbourhoods Service, would be involved in the development of the marketing approach. In order for the scheme to be viable, it was anticipated that 3,000 customers would be required and, to that end, conversations would also take place with Housing Services and Adult Care to target the promotion of the scheme. Furthermore, the scheme would be promoted to private landlords and tenants.

Resolved:-

1.      That the Cabinet be advised that the recommendations be supported.

2.      That an update report on the performance and outcomes from the Community Energy Switching Scheme be submitted to the Improving Places Select Commission after twelve months from the commencement of the scheme.