Decision details

That due to e.on withdrawing from the HNIP project and the project not progressing, the grant be returned to BEIS in its entirety.

In March 2018 e.on informed the Council that their Business & Continuity Solutions Board had recommended they do not progress with the DEN connection. This decision needed to be ratified by the e.on UK Board.

Since the UK Board’s decision was to be made after the final grant drawdown date the decision was taken to drawdown the grant so as not to lose this opportunity. The grant was drawn down and put into a holding account with the condition that it would not be released until negotiations with e.on had concluded and approval from the Executive Director, Place to proceed via the Cabinet delegated decision.

BEIS fully appreciated that the Council was still in negotiations with e.on and gave the Council flexibility to conclude negotiations. BEIS confirmed that if the Council was unable to reach an agreement with e.on the grant would be returned with no conditions attached.

Working with Veolia, the Council developed a package of works for the City Centre DEN which the funding could have been used for, however these were deemed by BEIS to have not yet reached the level of maturity required to be eligible for HNIP funding; and that proposed 50/50 match funding approach did not align with the HNIP funding gap approach and possibly state aid rules.

E.on declined the opportunity to submit a revised proposal.