Councillor Ruth Gordon, Cabinet Member for Placemaking and Local Economy, approved the procurement strategy for heat supply arrangements for the Selby Urban Village development. This decision will allow for direct negotiations with Energetik, the district heat network provider, for connection, supply, and potential management of heat for the scheme over 40 years.

Selby Urban Village - Procurement Strategy for Heat Supply Arrangements

Councillor Ruth Gordon approved the commencement of a mixed procurement strategy for the Selby Urban Village development, authorising direct negotiations with Lee Valley Heat Network Operating Company Limited, trading as Energetik. This agreement will cover the connection, supply, and potential management and maintenance of heat for the scheme for a period of 40 years.

The decision was made to align with the sustainability aims of the Selby Urban Village Project, which requires connection to a District Energy Network as per the London Plan¹ and local planning policies of both Haringey and Enfield Councils. Previous Cabinet reports in September 2023 and June 2024 had already established a communal heating system connected to a District Energy Network as the preferred solution.

The procurement strategy involves a mixed procurement of works, supply, and services, encompassing both public and utility contracts. Due to the nature of the agreement, it is exempt from standard procurement regulations that would typically require a competitive process. This exemption is based on the Procurement Act 2023², specifically relating to utility contracts where the authority is not acting as a central purchasing body and the market is open. This approach is intended to ensure the timely completion of the procurement, aligning with the onboarding of the main works contractor for Selby Urban Village in March-April 2026, and to allow Energetik to oversee the technical design work for the heat supply infrastructure.

Alternative options considered included pursuing a different heating solution, connecting to a different district heat network supplier, procuring connection and supply separately, or managing the heat supply in-house. However, connecting to Energetik was deemed the most viable and policy-compliant option. While Energetik is the preferred supplier, the council is exploring alternative options as a fallback in case of non-connection.

The Selby Urban Village development, located across both Haringey Council and Enfield Council areas, will deliver new council homes and community facilities. Energetik, owned by Enfield Council, currently supplies energy to approximately 1,700 domestic customers and is expanding its network. The heat is primarily generated from gas boilers at the Edmonton Eco park, with plans to replace 90% of this with low-carbon heat from an Energy Recovery Facility.

The proposed agreements include:

• Connection Charges: For the installation of pipework connecting the scheme to Energetik's network, with costs included in the development capital budgets.
• Supply Agreements: For the provision of heating and hot water to community facilities and new homes, with a 40-year duration.
• Service Agreement (Management & Maintenance): For the management and maintenance of the heat network for the new homes, also for a 40-year duration.

The report highlighted that the procurement aligns with the Council's Corporate Delivery Plan 2024-2026, contributing to the building of high-quality sustainable homes and the objective of achieving zero carbon and climate resilience. The decision is also expected to have a positive impact on residents with protected characteristics, particularly those on the housing register and in areas of socioeconomic deprivation.