Decision

The Cabinet Member for Regeneration and Renters approved:
The contract award to Vital Energi
Utilities Limited, for the provision of Energy Management Services
for the Ebury Bridge Renewal Scheme across Phases 1, 2 and 3, for a
total sum of £4,274,485.83 exc. of VAT [£5,129,382.99
incl. VAT]. The contract term is for a period of 7 years to
commence from September 2024 until September 2031.
Delegated authority to the Executive Director of Regeneration,
Economy and Planning the decision to proceed with the contract
award following the outcome of the Section 20 Notice of Proposal
leaseholders’ consultation process.
Utilised the value of the £1,428,779 for Capital
Expenditure for Void Payments and Set-up costs. See breakdown for
costs below:
a.     
Void Payments: Approved the spend of £1,400,000 for the
Council (WCC) to make payments of £200,000 per annum over the
7-year period in respect of Phase 3 of the development scheme being
delivered. These costs will be drawn from the project contingency
budget for Phase 1.
b.    
Set-up costs: Approved spend of £28,779 for the Council (WCC)
to pay for the acceptance of Energy centres, infrastructure, and
mobilisation fees.
The remaining costs will be recovered or recharged through
either service charges or operationally within the HRA Business
Plan.
The contract award is subject to the outcome of the S20
consultation period, which lasts 32 days. Following this period,
approval for the contract award will be sought from the Executive
Director via Delegated Authority.
 
The reason for the recommendation was
to secure the contract sum of £4,274,485.83 exc. VAT and
appoint for the provision of “Energy Company Management
Services” to provide energy management of systems on
residential block, estate and external services including the
energy facility for the Ebury Bridge Regeneration across Phases 1,
2 & 3.
The Council’s (WCC) payment of
£1,428,779 will cover the £1,400,000 over the 7-year
period (£200,000 per annum) is in respect of related costs
impact for maintenance services of the energy centre (heating and
cooling plant) which serves phases 1 and 3 combined. The energy
centre design and capacity incorporate both Phases 1 & 3 of the
build. The Phase 3 of the development Scheme payments are being in
respect of capital cost of the energy centre and its associated
routine maintenance. The Phase 3 development programme is due to be
delivered in 2031. The remaining £28,779 will be used for
‘setting up costs’ for the acceptance of Energy
Centres, infrastructure, and mobilisation that will be billed by
Vital Energi directly to WCC. These
costs are not considered recoverable from any of the end user
customers of the heat and cooling network in occupancy under the
Scheme.
The balance of contract costs will be
fully recovered through either a recharge to leaseholders or
operationally via the HRA Business Plan.