Agenda item

The Cabinet Member for Cabinet Member for Housing Services, Private Renters, and Planning considered the report which, following a design process, tenant engagement and an evaluation, sought approval to withhold a notice to proceed for a pilot Energiesprong project of 51 council-owned properties.

It was noted that the delegation to Cabinet Member of a decision whether or not to proceed was agreed under 3.6 in the Cabinet Report “Energiesprong Retrofit Pilot Project Progression” at the Cabinet meeting on 16 March 2021.

The Cabinet Member RESOLVED

1.    To agree to withhold issuing a notice to proceed and end the contractual arrangements with the Energiesprong solution provider Equans UK (previously Engie Regeneration Limited). This will mean that the Energiesprong project on 51 properties around Rivulet Road stops.

2.    To agree that Haringey remains within the Greater London Authority (GLA) Innovation Partnership to investigate further opportunities to undertake an Energiesprong project on the Council’s housing stock.  This could involve exploring options with alternative suppliers on the GLA Innovation Partnership framework.

3.    To approve not drawing down £1,487,000 of Government Department of Business Energy and Industrial Strategy (BEIS) Social Housing Decarbonisation Funding (SHDF) from London Borough of Barking and Dagenham (lead partner) which was secured to deliver this pilot project.

4.    To agree that an alternative deep retrofit project is investigated for the 19 tenanted homes who had signed up to the pilot Energiesprong project and 2 council properties which are void.

Reasons for decision

The Energiesprong designs submitted by Equans:-

·         did not meet the agreed gross maximum price per property of £85k. This meant that the Council would have to significantly increase its funding towards the project.

·         did not offer the expected maintenance savings. This meant that the Council would have to increase its maintenance programme to manage these improved properties.

·         could not be completed by the end of March 2023 to claim BEIS funding. This meant that the Council would have to significantly increase its funding towards the project.

·         included unacceptable design compromises. This would introduce issues not previously agreed with the tenants (such as internal works), may require planning requirements or did not offer a pathway to a quick and replicable solution.

Alternative options considered

Continue with the Energiesprong pilot project with Equans for 51 properties around Rivulet Road.

This option is not recommended as the suggested approach does not satisfy the principles set out below:-

·         Quick installation with minimum disruption to tenants through offsite manufacture.

·         Financial viability, ie with the BEIS grant funding, maintenance savings and comfort charge payments, the capital outlay is recouped over a 30 year period.

·         A replicable approach.

·         A fixed gross maximum price (for the works) per property with available grant funding.

·         Economies of scale in future stages of the project through continued innovation.

·         Delivery to the BEIS funding deadlines. Without the grant funding the business case is not met.

Continue with the Energiesprong pilot project with another solution provider for 51 properties around Rivulet Road.

This option is not recommended as it could not be completed to the BEIS funding deadlines.  The project would therefore not be financially viable.

Withhold a notice to proceed and pull out of the GLA Innovation Partnership.  Do not consider Energiesprong projects going forward.

Energiesprong remains a recommended approach to achieve deep retrofit at pace with a financial mechanism to repay the cost over a 30 year period.  Remaining within the GLA’s Innovation Partnership will allow Haringey to benefit from the experiences of the suppliers, contractors and other participating local authorities and reconsider an alternative Energiesprong project with another solution provider when appropriate.