Agenda item

8.1

RESOLVED: that Cabinet:-

8.2

(1)

approves the approach set out in this report to install individual property heat metering and implement associated billing arrangements at the Council’s community heating sites and set the Community Heating charges; and

8.3

(2)

delegates to the Director of Housing, Enterprise and Regeneration and the Director of Commissioning, Communities authority to put in place detailed arrangements to implement the matters approved in (1) above as follows:-

8.4

(a)

the Director of Housing, Enterprise and Regeneration is authorised to finalise procurement processes and evaluate tenders on such terms as he considers appropriate;

8.5

(b)

the Director of Commissioning, Communities is authorised to conduct a consultation programme, set the Community Heating charges (in accordance with the arrangement set out in the HRA Business Plan and the budget setting process for 2013/14) and make proposals to leaseholders and freeholders affected by the changes on such terms as he considers appropriate;

8.6

(c)

the Director of Housing, Enterprise and Regeneration and the Director of Commissioning, Communities are each individually authorised generally to take such further steps within the scope of their own service areas as they consider appropriate to progress the Community Heating Heat Metering Project, or to safeguard the Council’s interests in relation to it;

Provided that:-

8.7

(i)

the Director of Housing, Enterprise and Regeneration and the Director of Commissioning, Communities must, where appropriate, exercise this delegated authority in consultation with the Cabinet Member for Homes and Neighbourhoods, the Cabinet Member for Environment, Waste and Streetscene, and each other; and

8.8

(ii)

further Cabinet approval must be obtained prior to the letting of any contract or contracts for the installation heat metering, controls and payment equipment, and any associated billing and communication services connected with these.

8.9

Reasons for the Decision

8.9.1

Installing heat meters will enable households served by community heating to have the same facility to control their heating costs and comfort levels as households with individual boilers. This will also support the wider Council strategy to modernise community energy provision, reduce environmental impacts and fuel poverty, and is recommended as a fairer way to control heating costs.

8.9.2

Officers working on this modernisation programme are recommending a full roll out of the next generation of heat metering and billing arrangements. Initially a pilot ahead of a full roll-out had been considered however, the procurement of a larger contract was assessed as representing better value for money.

8.10

Alternatives Considered And Rejected

8.10.1

Option 1 ‘Do Nothing other than modernise existing metered sites’:

An alternative approach to maintain the current heat metered sites was also considered. This would have the advantage of keeping an arrangement that households are currently used to, and it would have reduced the capital costs required for metering as only the older metered sites would have required investment. Feedback from tenant meetings  was  strongly in support of metering to help households reduce bills so this option would not provide households with an opportunity to do this  or for the associated reductions in carbon emissions to be achieved.

8.10.2

Option 2 ‘ Introduce heat meters, but with an initial pilot’:

This approach was initially thought to be a strong option as it would allow for equipment to be tested, and for the effects on bills to be assessed before a wider roll out. The assessment of this option however, was that we would gain better competitive interest from the market for a full roll out. The scale of the programme would achieve better unit prices, and the cost of the billing and communication equipment would be spread over a larger number of installations. In addition, it was felt that the pilot process would have extended the programme too long, when feedback was generally in support of metering. The recommended approach for a full roll out is similar to that adopted in other cities which have switched to full heat metering. It will however, be possible to allow  for a review period within the install programme to adjust any details, and in particular to ensure communications with affected households is effective in minimising  any negative impacts from these changes.