Agenda item

To consider a report by the Head of Environmental Management on the procurement of a green deal partner relationship for Cambridgeshire.

(Councillor D M Tysoe, Executive Member for Environment, was in attendance for consideration of this item).

With the aid of a report by the Head of Environmental Management (a copy of which is appended in the Minute Book) the Panel gave consideration to the establishment of a Countywide Green Deal partnership. The Executive Member for Environment reported that the Home Energy Act required all local authorities actively to promote and report on local Green Deal activity within their area whilst also playing a lead role in its delivery. The scheme would enable households to spend up to £10,000 on energy saving measures within their homes with repayments made through their energy bills. The “Golden Rule” was that repayments should not exceed the projected cost savings on an average bill for the duration of the green finance arrangement, which could be for as long as 25 years for houses.

The Environment Team Leader acquainted the Panel with the events which had led to the development of a Cambridgeshire Green Deal brand. To date, three of the participating authorities had endorsed the proposals. Members were advised that a joint procurement exercise would be required in order to establish a partner relationship with a fully accredited Green Deal Provider. This would be subject to EU procurement rules and it was intended that local assessors and installers would be involved in the scheme. It was confirmed that the costs of any energy improvements works would be levied upon the property and not homeowners. In response to a question by a Member, it was confirmed that in the case of private rented properties, permission to carry out works would be required from the landlord.

Members’ attention was drawn to the Green Deal investment potential in Huntingdonshire, together with the likely number of leads that might be generated, which was expected to produce an income of around £30,000 - £60,000 per annum for the Council. These projections were based on the findings of a report commissioned by the County Council. The Panel expressed the view that safeguards should be put in place to ensure the scheme did not operate in a way that might damage the Council’s reputation. 

Discussion then ensued on the Energy Company Obligation (ECO). The ECO assisted with the installation of energy efficiency measures in hard to treat properties and in vulnerable and fuel poor households. Funding to undertake works to qualifying properties under the ECO would only be available through the Green Deal. The cost would be met by the major energy companies.

The Panel expressed the view that a robust methodology and associated assessment software would be required to support the accreditation and certification of energy improvement assessors and installers. This would guarantee the standard of works undertaken and the probity of the practices employed to sell them and also protect the Council’s reputation. It was further suggested that points of contact within the Council and communities should be established who would act as “trusted” informants about the scheme.

The Panel was also of the view that the Green Deal offer for Cambridgeshire should commence operation as soon as possible. Whilst there was a need to ensure the partnership arrangements with a Green Deal provider and the offer were sound, Members were aware that other providers had started marketing their products and expressed their view that this opportunity should not be missed. In response, the Environment Team Leader reported that adherence to the timescales for the launch of the scheme specified within the report would ensure that this did not happen.

Members commented that the level of referral fees should not form part of the criteria employed to identify the Provider. The Provider should be selected on the basis of its ability to provide high quality energy saving measures in a responsible way to meet the needs of customers. Following discussion on the role of the Environment Team in generating leads and undertaking marketing activity and having requested that an update report was submitted to the Panel after a year of the scheme’s operation, it was

RESOLVED

(a)  that, subject to the Panel’s comments above, the Cabinet be recommended to endorse the content of the report now submitted by the Head of Environmental Management; and

(b)  that an update on progress of the Green Deal Partnership scheme be submitted to the Panel after 12 months of operation.