Agenda item

9.1

It was formally moved by Councillor Douglas Johnson, and formally seconded by Councillor Christine Gilligan:-

That this Council notes:-

(a)      the proposed 87% increase in community heating charges in the Housing Revenue Account from 3.04p to 5.69p per unit, with further increases mooted, and the consequent impact on those tenants on the lowest incomes;

(b)      the significant difficulties delivering retrofit solutions to make homes energy efficient due to a severe lack of skills and capacity in the energy efficiency sector, and that, conversely, there is real potential for training to help create new skilled jobs;

(c)      in May 2020 the charity, National Energy Action, estimated that 1 in 10 households in the Sheffield Area were in Fuel Poverty; with huge price hikes expected in energy bills, this is going to get significantly worse, and only through energy efficiency schemes that significantly reduce energy demand will householders be protected from the fluctuations of volatile energy markets;

(d)      achieving a zero carbon Sheffield by 2030 will require the Council to develop a viable way of reducing emissions at scale in the built environment while ensuring warm, healthy homes that are affordable to heat;

(e)      the work being carried out by a number of councils in the Retrofit Accelerator Homes Innovation Partnership using the Energiesprong method (first developed in The Netherlands) to retrofit homes in around a day;

(f)       the Retrofit Accelerator Homes Innovation Partnership provides a way for councils, and other social housing providers, to collaborate, share information, procure and jointly bid for government and other funding streams;

(g)      that Energiesprong, a not-for-profit company, works with local councils on developing a programme to deliver warmer homes through a retrofit programme delivering a home which is net zero energy, meaning it generates the total amount of energy required for its heating, hot water and electrical appliances; it also provides superior indoor comfort; this is achieved using bespoke prefabricated facades, insulated rooftops with solar panels, smart heating, and ventilation and cooling installations, and a refurbishment comes with a long-year performance warranty on both the indoor climate and the energy performance for up to 40 years;

(h)      Energiesprong are not contractors themselves but work with councils to help procure contractors to deliver to the Energiesprong specification;

(i)       the Energiesprong finance model for the Council is viable due to the reduction in future costs to the Council due to less boiler replacement and servicing costs, improvements to the property guaranteed for 40 years; there is also a “comfort charge” to tenants which, when added to their new energy bill, following refurbishment, will be less than their current energy bill, and this is guaranteed so tenants can not be required to pay more than they would without the scheme;

(j)       there is a significant opportunity for Sheffield to develop a manufacturing facility to deliver energiesprong components for the South Yorkshire Region, creating jobs and skills in the region, and providing for a pipeline to deliver retrofitted homes; and

That this Council resolves:-

(k)      to request the Administration to consider developing an approach to a Partnership with Energiesprong and the Retrofit Accelerator Homes Innovation Partnership to begin the retrofit to net zero energy standard of the Council’s Housing stock and to start building the capacity needed to deliver an Energiesprong offer to the wider housing sector.

9.2

Whereupon, it was formally moved by Councillor Sioned-Mair Richards, and formally seconded by Councillor Peter Price, as an amendment, that the Motion now submitted be amended by:-

1.       the addition of new paragraphs (b) to (e) as follows:-

(b)      that the sharp rise in utility prices worldwide has meant that the overall cost for gas and electricity has risen significantly, with wholesale energy prices being at the highest they have been in a long time, and there is still a lot of uncertainty about the ongoing costs in the months ahead;

(c)      that there are two parts to the district heating charges: a weekly standing charge, this essentially covers the fixed costs in providing heating and hot water, e.g. system heat losses, management and administration costs including billing, taking payments, IT, and data handling costs etc and, secondly, a kWh unit charge for metered units consumed in homes;

(d)      that the standing charge is increasing by 2% to cover the inflation cost, from £4.80 to £4.90, and that the kWh charge changing from 3.04p to 5.69p is a direct impact of the increase in the purchase price for both gas and electricity;

(e)      that moving from fixed rate charges in 2014 to meters has saved money for tenants, with the saving up until this year being on average 30% less than the original flat rate charges that were in place;

2.       the re-lettering of original paragraphs (b) to (k) as new paragraphs (f) to (o); and

3.       the addition of new paragraphs (p) to (r) as follows:-

(p)      believes that whilst Energiesprong may have a part to play in getting housing stock to net zero, so too may other organisations, and that once a robust ‘roadmap’ has been devised (by Spring 2022) we can really engage with the market to ensure deliverability and to rise to the challenges successfully;

(q)      reaffirms the HRA’s 5-year investment programme commitment to bringing all council homes up to EPC level C, and commits to developing a ‘road map’ to show how we not only can get our homes to EPC C as quickly as possible, but for a deliverable vision and timetable by which we can get to net zero for the Council’s housing stock; and

(r)       believes that, ultimately, council tenants need to be consulted on any changes and that action can only be undertaken with their backing.

9.3

It was then formally moved by Councillor Barbara Masters, and formally seconded by Councillor Andrew Sangar, as an amendment, that the Motion now submitted be amended by:-

1.       the addition of new paragraphs (k) to (m) as follows:-

(k)      that, however, the Energiesprong method is a very expensive form of retrofitting and that it will not be suitable for all housing stock in Sheffield;

(l)       furthermore, that it would only be possible to retrofit a small percentage of homes each year and that, therefore, thousands are likely to remain in poorly insulated homes for years to come and will be in fuel poverty as a result of pursuing a single technological solution to retrofitting;

(m)     that relying on one form of retrofitting will not allow us to achieve zero carbon Sheffield by 2030;

2.       the deletion of original paragraph (k) and the addition of new paragraphs (n) to (q) as follows:-

          That this Council resolves to ask the Administration to:-

(n)      explore a range of retrofitting solutions which can be rolled out in a shorter time frame and help more people, whilst exploring the potential use of Energiesprong;

(o)      identify which retrofitting solutions will provide best value for money for the different types of housing stock through a cost/benefit analysis;

(p)      improve the energy efficiency in its housing stock by scheduling retrofitting into its estate management strategy for Council-owned properties based on the findings, which may include developing an approach to a Partnership with Energiesprong and the Retrofit Accelerator Homes Innovation Partnership; and

(q)      explore the job creation potential in the range of retrofitting solutions identified and any upskilling necessary to help reach the potential.

9.4

The amendment moved by Councillor Sioned-Mair Richards was put to the vote and was carried.

9.5

The amendment moved by Councillor Barbara Masters was then put to the vote and was also carried.

9.6

The original Motion, as amended, was then put as a Substantive Motion in the following form and carried:-

RESOLVED:

That this Council notes:-

(a)      the proposed 87% increase in community heating charges in the Housing Revenue Account from 3.04p to 5.69p per unit, with further increases mooted, and the consequent impact on those tenants on the lowest incomes;

(b)      that the sharp rise in utility prices worldwide has meant that the overall cost for gas and electricity has risen significantly, with wholesale energy prices being at the highest they have been in a long time, and there is still a lot of uncertainty about the ongoing costs in the months ahead;

(c)      that there are two parts to the district heating charges: a weekly standing charge, this essentially covers the fixed costs in providing heating and hot water, e.g. system heat losses, management and administration costs including billing, taking payments, IT, and data handling costs etc and, secondly, a kWh unit charge for metered units consumed in homes;

(d)      that the standing charge is increasing by 2% to cover the inflation cost, from £4.80 to £4.90, and that the kWh charge changing from 3.04p to 5.69p is a direct impact of the increase in the purchase price for both gas and electricity;

(e)      that moving from fixed rate charges in 2014 to meters has saved money for tenants, with the saving up until this year being on average 30% less than the original flat rate charges that were in place;

(f)       the significant difficulties delivering retrofit solutions to make homes energy efficient due to a severe lack of skills and capacity in the energy efficiency sector, and that, conversely, there is real potential for training to help create new skilled jobs;

(g)      in May 2020 the charity, National Energy Action, estimated that 1 in 10 households in the Sheffield Area were in Fuel Poverty; with huge price hikes expected in energy bills, this is going to get significantly worse, and only through energy efficiency schemes that significantly reduce energy demand will householders be protected from the fluctuations of volatile energy markets;

(h)      achieving a zero carbon Sheffield by 2030 will require the Council to develop a viable way of reducing emissions at scale in the built environment while ensuring warm, healthy homes that are affordable to heat;

(i)       the work being carried out by a number of councils in the Retrofit Accelerator Homes Innovation Partnership using the Energiesprong method (first developed in The Netherlands) to retrofit homes in around a day;

(j)       the Retrofit Accelerator Homes Innovation Partnership provides a way for councils, and other social housing providers, to collaborate, share information, procure and jointly bid for government and other funding streams;

(k)      that Energiesprong, a not-for-profit company, works with local councils on developing a programme to deliver warmer homes through a retrofit programme delivering a home which is net zero energy, meaning it generates the total amount of energy required for its heating, hot water and electrical appliances; it also provides superior indoor comfort; this is achieved using bespoke prefabricated facades, insulated rooftops with solar panels, smart heating, and ventilation and cooling installations, and a refurbishment comes with a long-year performance warranty on both the indoor climate and the energy performance for up to 40 years;

(l)       Energiesprong are not contractors themselves but work with councils to help procure contractors to deliver to the Energiesprong specification;

(m)     the Energiesprong finance model for the Council is viable due to the reduction in future costs to the Council due to less boiler replacement and servicing costs, improvements to the property guaranteed for 40 years; there is also a “comfort charge” to tenants which, when added to their new energy bill, following refurbishment, will be less than their current energy bill, and this is guaranteed so tenants can not be required to pay more than they would without the scheme;

(n)      there is a significant opportunity for Sheffield to develop a manufacturing facility to deliver energiesprong components for the South Yorkshire Region, creating jobs and skills in the region, and providing for a pipeline to deliver retrofitted homes;

(o)      that, however, the Energiesprong method is a very expensive form of retrofitting and that it will not be suitable for all housing stock in Sheffield;

(p)      furthermore, that it would only be possible to retrofit a small percentage of homes each year and that, therefore, thousands are likely to remain in poorly insulated homes for years to come and will be in fuel poverty as a result of pursuing a single technological solution to retrofitting;

(q)      that relying on one form of retrofitting will not allow us to achieve zero carbon Sheffield by 2030;

That this Council:-

(r)       believes that whilst Energiesprong may have a part to play in getting housing stock to net zero, so too may other organisations, and that once a robust ‘roadmap’ has been devised (by Spring 2022) we can really engage with the market to ensure deliverability and to rise to the challenges successfully;

(s)      reaffirms the HRA’s 5-year investment programme commitment to bringing all council homes up to EPC level C, and commits to developing a ‘road map’ to show how we not only can get our homes to EPC C as quickly as possible, but for a deliverable vision and timetable by which we can get to net zero for the Council’s housing stock;

(t)       believes that, ultimately, council tenants need to be consulted on any changes and that action can only be undertaken with their backing

That this Council resolves to ask the Administration to:-

(u)      explore a range of retrofitting solutions which can be rolled out in a shorter time frame and help more people, whilst exploring the potential use of Energiesprong;

(v)      identify which retrofitting solutions will provide best value for money for the different types of housing stock through a cost/benefit analysis;

(w)      improve the energy efficiency in its housing stock by scheduling retrofitting into its estate management strategy for Council-owned properties based on the findings, which may include developing an approach to a Partnership with Energiesprong and the Retrofit Accelerator Homes Innovation Partnership; and

(x)      explore the job creation potential in the range of retrofitting solutions identified and any upskilling necessary to help reach the potential.