Decision details

Approval of emerging district heating strategy including short-term projects, funding and enabling actions

Councillor Evelyn Akoto having declared a disclosable pecuniary interest in this item, left the meeting room while this item was being discussed and a decision made.

RESOLVED:

Decisions the Cabinet

1.  That the action being taken to address the causes of major heating outages that occurred during winter 2018-19 (paragraphs 33-35 of the report) as well as the update on the delivery of the council’s 2017-20 District Heating Investment Plan (Appendix 3 of the report) be noted.

2.  That £490,000 be invested in developing low carbon heat networks to serve council (and wider) homes in Southwark. This will fund the detailed technical and financial viability and development plan work needed to advance the extension of the South East London Combined Heat and Power (SELCHP) network and to develop renewable heat networks on council estates as well as work needed to improve the council’s heat networks data and management processes (as summarised in paragraphs 92-108 and 153-165 and Appendix 2 of the report).

3.  That a Southwark Heat Networks Strategy, setting out the approach the council will take to improve and extend heat networks in the borough so more households have access to reliable, affordable and sustainable heat, and an accompanying Heat Networks Investment Plan be brought to cabinet in March 2020 for approval.

4.  That the establishment of a heat networks governance board as described in paragraphs 197-199 of the report to drive forward this work and ensure that issues of compliance, maintenance, resident engagement and investment strategy receive sufficient scrutiny and are resolved efficiently be agreed.

5.  That the establishment of a heat networks residents & homeowners working group as described in paragraphs 200-206 of the report, made up of representatives of council residents, homeowners and tenant management organisations, to provide feedback and advice on the management of council’s existing district heating systems and the development of new systems and of the wider Southwark Heat Networks Strategy be agreed.

6.  That the conversion of the fixed term strategic project manager (heat networks) into a permanent role and creation of a two year heat networks officer to take forward the development and delivery of the council’s heat networks strategy, which is known to require several years be noted.

7.  That the Heat Networks (Metering & Billing) Regulations and potential upcoming heat market regulation (see paragraphs 169-180 of the report) that could have significant financial and procedural impacts on the council be noted and that an update on the status of such regulations and the council’s position within 12 months be requested.

Decision by the Leader of the Council

8.  That the procurement strategy and award decisions relating to the renewable heating systems discussed in paragraphs 91-96 and 153-159 of the report be delegated to the cabinet member for housing management and modernisation for individual decision making (IDM).