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District Heating Update and Partnership Procurement
 
RESOLVED
that:-
 
(a )     Cabinet agree that the
council’s preferred delivery option for District Heating is
Model 3 (Supply Framework). Under this model the Council will enter
into a framework agreement with a Heat Provider and agree a form of
connection and supply agreement to be used for the supply of heat
to the Council across the eight towns, namely Alnwick, Ashington,
Berwick, Blyth, Cramlington, Hexham, Morpeth and Prudhoe on a
town-by-town basis as the schemes go-live;
 
(b )     Cabinet approve a procurement
exercise to select and appoint a legal and commercial advisor to
support the procurement activities needed to appoint a Heat
Provider. The forecast cost of the external legal and commercial
advisor support is ~£160,000, which it is expected will be
100% funded through the NELEP Energy Accelerator Fund at no
additional cost to NCC. In the unlikely case that the NELEP do not
fund the project a separate request for NCC to provide funding will
be made;
 
(c )     Cabinet resource and undertake a
procurement exercise to appoint a Heat Provider;
 
(d )     Cabinet agree to the inclusion
of the council’s future heat load to be in scope for
commercially viable District Heating schemes in each of the eight
locations, provided the commercial, economic and net zero tests are
met by the Heat Provider; and
 
(e )     the timescales for delivery
given market competition, be noted.