Decision details

To vary the current Heat Supply Agreement in place with Veolia ES Southwark Limited, to extend the heat network.

Councillors Evelyn Akoto and Natasha Ennin, having declared a disclosable pecuniary interest in respect this item, did not participate in the discussion on this item.

RESOLVED:

That, subject to receipt of First Tier Property Tribunal dispensation (see paragraph 2 of the report), and approval of the community infrastructure levy funding and green building fund funding (see paragraph 3 of the report):

1.  That the proposed variation to the council’s heat supply agreement with Veolia ES Southwark Limited (VESS) involving works which requires capital expenditure from the council of £5,500,000 and the supply of low carbon heat to 31 March 2050 at an estimated cost of £208,761,745 (precise value will depend on inflation) making a total estimated variation value of £214,261,745 and a total estimated contract value of £267,873,179 be approved.

2.  That the contents of the report, that the council aims to extend its heat supply agreement with VESS to supply low carbon heat to several additional housing estates and to continue doing so through to 31 March 2050 be noted.  In this regard the council is seeking dispensation from the First Tier Property Tribunal from the requirement to run a standard Section 20 consultation process (see paragraph 76).

3.  That for the council’s £5,500,000 capital contribution to receive separate approval (£2,000,000 from the green buildings fund, £1,000,000 of which is subject to a drawdown request to the planning committee, and £3,500,000 from the strategic community infrastructure levy requiring approval by the cabinet, also at December 2025 cabinet meeting but falling within a separate report) be noted.