Purpose

To request approval to submit an application for grant funding to the Heat Network Efficiency Fund.

Decision

That the Corporate Director Residents and Housing Services, in consultation with the Cabinet Member for Housing, Homelessness and Renters:

i)               Approves the submission of an application for grant funding to the Heat Network Efficiency Fund for the sum of £766,912.23.

ii)              Notes that the acceptance of any award, execution of a funding agreement, procurement, contract award and expenditure remain subject to separate legal, financial and constitutional approvals.

Reasons for the decision

The Heat Network Efficiency Fund is a grant administered by Talan on behalf of the Department of Energy Security and Net Zero that aims to support improvements to existing district heating or communal heating projects that are operating sub-optimally and resulting in poor outcomes for customers and operators.

LB Brent Housing Major Works Team are looking to submit an application for capital funding for a package of improvement measures to the currently existing communal heat network at Granville Road.

Alternative options considered

Officers have considered alternative options, including not proceeding with the improvement works or funding the works entirely through existing Council resources. However, due to ongoing pressures on the Housing Revenue Account (HRA), the proposed upgrades would not be affordable without securing external grant funding. A failure to proceed would leave the current performance issues unresolved and would compromise the efficient connection of Granville Homes to the South Kilburn District Heat Network. Officers therefore consider the submission of a HNES funding application to be the best option.