Agenda item

Cabinet Portfolio:                 Jobs and the Local Economy

Strategic Directorate:           Regeneration and Environment

Consideration was given to a report submitted for pre-decision scrutiny by the Strategic Director of Regeneration and Environment ahead of the Cabinet meeting scheduled for 20 July 2020 in respect of Community Energy Switching Scheme.

The Cabinet Member for Jobs and the Local Economy, the Strategic Director of Regeneration and Environment and the Environment, Energy and Data Manager attended the meeting to present the report and to answer members’ questions.

Following an Official Journal of the European Union (OJEU) procurement process to identify a potential partner to develop a Community Energy Switching Scheme, Cabinet approved the contract award to Robin Hood Energy (RHE) on 16 September 2019.  Since the award of the contract to RHE  a new management team had been enlisted and their business model reviewed and changed.  As a result, RHE could not agree to the specification under the terms of the procurement process and the contract could not be awarded.

The recent tender process provided a valuable insight into market conditions, with this learning taken forward into a revised proposal to re-tender the contract and to run an internal switching scheme in parallel, to support Rotherham residents and gain essential market data. The report covered the proposed activity for 2020-21 which included a market engagement and tender process for a new community energy switching scheme; an internally delivered switching scheme to run during the tender process; and a Smart Meter project funded by National Energy Association (NEA) which would help to support the switching scheme. The Community Energy Scheme was highlighted as an important scheme for residents, especially those experiencing fuel poverty, with help to obtain better tariffs.

Members noted that the report indicated no further consultation was planned and queried whether the proposals were based on the previous consultation. Considerable work had been undertaken previously and nothing had changed from a public perspective; it was a question of the procurement process and criteria to go out to tender.  A market engagement process had been undertaken through the portal to obtain provider input.

A Community Energy Officer was in post who would run the internal scheme, undertake market research and establish the networks.  An NEA grant had been obtained for the project to promote Smart meters to people aged over 65 and the officer would have training and then all the information gleaned from   market research, input from  engineers, feedback from people on the pros and cons of using smart meters would all inform the programme.  A Facebook page had been set up and information published on the website.

Members queried whether it might be difficult to attract another provider as it was a different energy market now and potentially this was a less attractive business model. As such they recognised the benefit of the internal parallel scheme so something was in place to benefit residents. This was acknowledged by officers who conceded that the last procurement had been a challenge hence the work undertaken with providers before going out to tender again to ensure the specification would be fit for purpose for potential bidders.

As the April launch date would fall within the pre-election publicity period, officers agreed to look at the timescales again.

The Cabinet Member and officers were thanked for their attendance to present the report.

Resolved:-

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

2)    That a report on further developments in respect of the Community Energy Switching Scheme be submitted to the Improving Places Select Commission in due course.