The Overview and Scrutiny Committee met on Wednesday 10 September 2025 to discuss the performance and future plans of B&D Energy Ltd and to agree the scope for an in-depth scrutiny review into Education, Health and Care Plans (EHCPs) for children and young people with learning disabilities and autism. The committee reviewed B&D Energy's progress, financial performance, and strategic objectives, and agreed to focus the EHCP review on the process, challenges, and data gathering related to these plans.

B&D Energy Ltd

The committee received a comprehensive report on B&D Energy Ltd, a wholly owned company of Barking and Dagenham Council established in 2016 to deliver low-carbon and competitively priced energy. The report highlighted the company's improved financial position and its robust preparation for new Ofgem regulations. A key takeaway was the strategic importance of anchor load connections in Barking Town Centre for the company's future.

David Lewis, Managing Director of B&D Energy, presented the report, detailing the company's progress over the last two years, including board changes and infrastructure investment. He explained that the company's operational expenditure covers all costs beyond the direct cost of energy, such as IT, maintenance, and salaries.

Councillor Phil Waker raised a question regarding the significant difference between gross profit and operating profit, which Mr Lewis explained was due to operational expenditure. Councillor Ingrid Robinson inquired about the handover of works from Countryside at Becontree Heath and the capacity to meet future demand. Mr Lewis confirmed positive progress on Becontree Heath, with a professional organisation engaged to complete necessary upgrades, and expressed confidence in adopting the system by the end of the year. He also addressed concerns about capacity, noting that while last winter was tight, an additional boiler and two Combined Heat and Power (CHP) units were being installed at the Gascoigne Energy Centre to increase capacity. A new Strategic Energy Centre at Gudwara Road is behind schedule but is crucial for long-term heat supply.

Discussions also covered the company's decarbonisation strategy, with a commitment to match the decarbonisation profile to legislation and regeneration profiles, utilising gas as a reliable backup. The review of tariffs was confirmed to be annual, and the company does not currently service communal boiler systems.

Concerns were raised about the reliability of B&D Energy's IT systems for reporting Key Performance Indicators (KPIs). Mr Lewis explained that while the core infrastructure is hosted by the council for security, the company is developing a new CRM system, Freshdesk, and tendering for an upgraded billing platform to improve customer interaction and meet future Ofgem requirements. The implementation of these systems is targeted for 2026.

Regarding residential debt, it was reported to be around 3% of revenue, with plans to introduce pay-as-you-go systems and repayment plans to manage this. Vulnerable customers are supported through a dedicated vulnerability page on the website and individual assessments.

The committee also discussed governance structures, with assurances that a corporate oversight board and regular meetings with the board chair are in place to manage risks. The financial implications of delayed projects were acknowledged, with potential impacts on loan repayments and dividends to the council. The council has loaned B&D Energy £25.5 million, with repayment scheduled to begin in 2027-28.

Councillor Val Masson expressed concern about the prolonged lack of basic energy provision for residents in areas like William Street Quarter, despite the company's ambitious plans. Mr Lewis acknowledged these issues and outlined plans to connect these properties to the heat network.

The committee was informed that B&D Energy is exploring opportunities for decarbonisation, including potential heat sources from Beckton Sewage Treatment Works and discussions with Thames Water. The company is also investigating the use of hydrogen in the Barking Town Centre Heat Network.

Regarding pricing, Mr Lewis explained that heat charges are comparable to gas prices, with standing charges including maintenance and call-out services. Electricity prices are competitive due to the avoidance of grid charges on the private wire network. The company is subject to corporation tax, but expects to benefit from deductions and capital allowances for a considerable period.

The committee was assured that B&D Energy is committed to meeting its obligations and improving customer service, with a focus on increasing capacity for the upcoming winter. The company is still investing heavily in infrastructure and does not anticipate paying dividends to the council until after 2030.

Updated In-Depth Scrutiny Review Scoping Report: Learning Disabilities and Autism

The committee reviewed an updated scoping report for an in-depth scrutiny review focusing on Education, Health and Care Plans (EHCPs) for children and young people with learning disabilities and autism. The review will examine the national context, the EHCP process and its challenges, demand from those moving into the borough with an EHCP, and data gathering on EHCPs.

Sal Asghar, Director of Strategy, presented the report, explaining that the focus had narrowed from a broader lifespan review to specifically address EHCPs due to increased demand and their significant impact on a child's progression.

Nicola Willingham, a parent and professional supporting families with SEND needs, raised concerns about the inconsistent application of the legal threshold for EHCP needs assessments, leading parents to pursue costly tribunal routes. The committee agreed to investigate this further as part of Key Line of Inquiry 2.

Councillor Phil Waker suggested inviting parents to informal meetings to provide direct input. Councillor Ingrid Robinson inquired about information sharing for children with SEND needs who do not have an EHCP, particularly when transferring schools. It was noted that schools often lack comprehensive information in such cases.

Nicola Willingham highlighted upcoming parliamentary debates on potential changes to the EHCP process and the removal of SEND Tribunal judges, indicating significant shifts in the landscape.

The committee discussed the challenges faced by schools in managing EHCP applications, with reports of limitations on the number of applications schools can submit per term. Concerns were also raised about the vagueness of some EHCPs, making it difficult for schools to provide specific support and for the council to manage the increasing number of plans.

The review aims to identify what is working and what is not at a local level, with the goal of developing recommendations to improve the experience for families, the delivery of care in schools, and the assessment process. The committee agreed to the proposed terms of scope and work plan for the review.

The work programme was also discussed, with updates on upcoming reports and a request for outstanding figures regarding Reside to be provided to the committee.