Purpose

To seek approval for the extension of the existing Contract with the Council’s Delivery Partner for the Warm Homes Local Grant Energy Scheme - Financial Year 2 Delivery. 

Decision

RESOLVED:

KEY DECISION:

That the Executive:

i)                    Approved the extension of the existing contract with Aran Insulation Ltd, the appointed Delivery Partner for the Warm Homes Local Grant Energy Scheme, for the period of one year, at the value of £849,098.00.

ii)                  Noted that the Capital Programme Update report includes approval to uplift the budget by £849,098.

iii)                Delegated authority to the Director for Regulatory Services, in consultation with the Executive Member for Regulatory Services, to take the necessary procurement and contractual steps to deliver the 2027/28 Warm Homes: Local Grant programme, up to the confirmed DESNZ allocation of £831,915, financial year 3, subject to confirmation of funding and compliance with the Council's financial, legal and procurement requirements.

iv)                Delegated authority to the Director for Regulatory Services, in consultation with the Executive Member for Regulatory Services, to accept and issue any additional WH: LG funding subsequently awarded, subject to the same requirements as 3iii). DESNZ have stated that strong performing authorities may be offered additional funding, subject to availability, and the Council has expressed interest in this.

Reason for Recommendations:

a)     The extension will ensure the uninterrupted delivery of energy efficiency improvements to eligible households, enabling the Council to continue meeting programme objectives and maximise the available external grant funding within the required delivery timescales.

b)     Aran Insulation Ltd has established the necessary systems, resources and   supply chains to deliver the scheme effectively, and extending the current contract will maintain continuity, avoid delays associated with procuring a new contractor, and support the achievement of key outcomes relating to fuel poverty, energy efficiency and carbon reduction.

c)     The contract extension will support the continued delivery of energy efficiency measures to eligible households, maximise the utilisation of external grant funding, and contribute towards the Council's objectives relating to reducing fuel poverty, improving housing quality, and supporting carbon reduction initiatives.

d)     A delegated decision is provided at a later date, once the additional funding over the initial allocation is confirmed, to allow for the budget to be uplifted through the council’s internal Strategic Capital Board.

e)     3.3 Alternative Options Considered: Alternative options have been considered and are detailed in section 5.1 of the report. In summary these included the options to extend the current contract with the same delivery provider, find an alternative provider or cease delivery altogether. The first option is most favourable.