Energy Efficiency - CHiL Delivery Partner
The following item was submitted as urgent business with the Chair’s agreement in accordance with Section 100B(4) of the Local Government Act 1972, the reason being to ensure complex legal issues had been addressed.
The Deputy Leader of the Council reported on behalf of the Portfolio holder for Housing and Regenerationwho had submitted a report to inform Cabinet of the procurement process undertaken to appoint a delivery agent for Cosy Homes in Lancashire (CHiL).Approval was sought to waive the Council’s Contract Procedure Rules to seek approval for Hyndburn Borough Council to enter into an agreement with Rhea Projects Ltd so residents and households in Hyndburn have access to opportunities and funding to improve the energy efficiency of their homes.
Approval of the report was not deemed a key decision.
Reasons for Decision
Hyndburn Borough Council is committed to improving the energy efficiency of domestic homes within the Borough. This includes addressing health inequalities exacerbated by living in cold and damp homes, reducing fuel poverty, tackling seasonal excess deaths and reducing carbon emissions from domestic properties.
The latest fuel poverty figures available (2016) show that Hyndburn had 5,008
households in fuel poverty representing 14.1% of households.
There have been a number of initiatives and funding available to Hyndburn residents over the years. Most recently this has been via the annual ‘Affordable Warmth Fund’ that has provided funding for boilers, central heating systems, loft and cavity wall insulation to qualifying households. This has been administered locally by the Council and Homewise
Cosy Homes in Lancashire (CHiL) is a brand established by the 12 district and 2 unitary council’s in Lancashire and the County Council to co-ordinate and deliver domestic energy efficiency schemes across Lancashire. CHiL has been in place since 2014 and has evolved from a strong track record of the council’s working collaboratively through the long established Lancashire Energy Officers Group.
CHiL projects seek to maximise government Energy Company Obligation (ECO) and other grant and funding opportunities that are available for energy efficiency and heating measures for Lancashire residents. CHiL particularly supports those households in fuel poverty and vulnerable to the effects of living in a cold home. Details of the current affordable warmth / energy efficiency measures available for Lancashire and Hyndburn residents along with the qualification criteria.
In order to access funding for energy efficiency through the latest government initiatives ‘consortium’ approaches are encouraged for efficiency and economies of scale. The CHiL brand is Lancashire’s co-ordinated approach. It is proposed that Hyndburn BC become part of this consortium or collaborative working approach.
In October 2018 Blackpool Council, on behalf of the other Lancashire districts, undertook a procurement / tender exercise to select a delivery agent for CHiL. This approach was taken to ensure the delivery of a common and co-ordinated approach to households accessing energy efficiency measures across Lancashire and to benefit from ‘economies of scale’ rather than each district undertaking its own procurement process. It builds on the long standing collaborative working between the Lancashire Authorities. Rhea Projects Ltd was selected as the successful delivery agent. The Council is satisfied with the procurement process undertaken.
In order for Hyndburn residents to benefit from the outcome of the procurement process undertaken and for the Council to enter into its own agreement with Rhea Projects Ltd the Council needs to sign the Indemnity Letter with Blackpool Council.
In signing the Indemnity Letter the Council is confirming that Blackpool Council was the lead authority in undertaking the procurement process referred to in para 3.7 above and is satisfied with the processes and procedures that were followed.
Alternative Options Considered and Reasons for Rejection
The Council could undertake its own procurement exercise to appoint a Hyndburn
delivery agent and / or approach energy companies direct to access funding for
energy efficiency measures. This approach would be time and resource intensive.
As stated above the Government encourages ‘consortium’ approaches for efficiency
and economies of scale. As a Lancashire wide approach is in place through CHiL it
seems sensible that Hyndburn becomes part of this.
The Council is required to adopt a Statement of Intent for ECO Flexible Eligibility so
qualifying households can potentially benefit from energy efficiency measures as
part of the Government’s Energy Company Obligation Scheme. The Council could
choose to adopt the Lancashire SOI, however it is preferable to adopt our own
version so we have flexibility around the delivery of energy efficiency measures for
Resolved (1) That Cabinet agreed to waive the Council’s Contract Procedure Rules in respect of appointment of a CHiL delivery agent and noted the procurement process led by Blackpool Council on behalf of the Lancashire local authorities; and,
(2) That Cabinet granteddelegated authority to the Head of Regeneration and Housing, in conjunction with the Executive Director (Legal Services), to agree and sign an ‘Indemnity Letter’ in respect of the procurement process undertaken by Blackpool Council; and,
(3) That Cabinet granteddelegated authorityto the Head of Regeneration and Housing, in conjunction with the Executive Director (Legal Services), to agree terms for, and enter into, a contract / agreement with Rhea Projects Ltd as the delivery agent for CHiL.
(4) That Cabinet adopts the Hyndburn BC ‘Statement of Intent for ECO Flexible Eligibility’ attached as Appendix 1 to the report.
- Cabinet Report 200319, item 361. PDF 94 KB
- App1. Hyndburn BC SOI Version 1 (3), item 361. PDF 321 KB
- App2. EE Measures, item 361. PDF 678 KB
- App3. Customer_First_Analysis ECO Flex, item 361. PDF 242 KB