Issue - meetings

To seek approval to enter a contract with Equans Buildings Ltd. for a programme of works to upgrade Council owned properties with energy efficiency and low carbon heating measures, in line with the of Warm Homes: Social Housing Fund grant funding allocation.

Purpose of report

To seek approval to enter into a contract with Equans Buildings Ltd. for a programme of works to upgrade Council owned properties with energy efficiency and low carbon heating measures, in line with the Warm Homes: Social Housing Fund grant funding allocation.

Decision

That Cabinet approves the award of a contract to Equans Buildings Ltd. for a period of 3 years with an estimated value of £7.81 million for energy efficiency and low carbon heating measures in Council owned properties.

Alternative options considered and rejected

The Council could have chosen not to deliver a programme of energy efficiency projects and return any funding allocation to the Department for Energy Security and Net Zero. This would not have made progress towards upgrading the Council’s stock of properties to a minimum of EPC C by 2030 and would further expose tenants to high and volatile energy prices.

Reasons for the decision

The Council was responsible for around 6,000 properties which were let to tenants.

The average Energy Performance Certificate (EPC) for the Council’s housing stock was an EPC D. There was a requirement for the Council to achieve an average of at least EPC C across the portfolio by 2030 to mitigate fuel poverty for tenants, as well as to contribute to wider decarbonisation of the district of South Kesteven. This required a significant programme of targeted energy efficiency upgrades.

The energy shocks of recent years showed the urgent need to upgrade homes to protect billpayers, reduce fuel poverty, and contribute to national and local targets to meet net zero carbon targets. Following the ongoing delivery of a programme of upgrades through Wave 2.1 of the Social Housing Decarbonisation Fund, the Council identified the opportunity to submit a bid into the following round of funding: the Warm Homes: Social Housing Fund (WH:SHF).

The bid window opened on 30 September 2024.

The Council conducted a procurement exercise to select an experienced partner to support with bid development and submission to give the Council the best possible chance of securing government funding for this project. The preferred procurement route identified was a direct award via a framework, to meet the delivery timeframe dictated by the key dates of the WH:SHF scheme. The Council completed a three-stage process to appoint a successful supplier and ensure value for money.

Equans were selected as the successful provider: they had extensive experience of working with housing providers to deliver decarbonisation programmes which put SKDC in a strong position for delivery of a programme of energy efficiency upgrades on the Council’s housing stock.

The Council submitted a formal bid in November 2024 for a £12m project to be funded by £6m WH:SHF grant and £6m match funding from the Council to be delivered over a three-year period commencing April 2025. The Department for Energy Security and Net Zero wrote to the Council in late February 2025 with a revised grant allocation letter. This update noted that, due to the volume and scale of applications received the  ...  view the full minutes text for item 143