REPORT TO CABINET. 18 April 2018

Transcription

1 Agenda Item 8 REPORT TO CABINET 18 April 2018 Subject: The Energy Cmpanies Obligatin (ECO) ECO Flexibility Arrangements Presenting Cabinet Member: Cuncillr Kerrie Carmichael - Cabinet Member fr Husing Directr: Executive Directr Neighburhds Dr Alisn Knight Cntributin twards Visin 2030: Key Decisin: Frward Plan (28 day ntice) Reference: Cabinet Member Apprval and Date: Directr Apprval: Reasn fr Urgency: Exempt Infrmatin Ref Ward Cuncillr (s) Cnsulted (if applicable): Scrutiny Cnsultatin Cnsidered? Cntact Officer(s): Yes SMBC09/04/2018 Cuncillr Kerrie Carmichael 09/03/18 Dr Alisn Knight Urgency prvisins d nt apply. Exemptin prvisins d nt apply Ward cuncillrs have nt been cnsulted Scrutiny have nt been cnsulted Mark Taylr Energy Efficiency Delivery Officer mark_taylr@sandwell.gv.uk That Cabinet: DECISION RECOMMENDATIONS 1. Adpt the attached Energy Cmpanies Obligatin Flexible Eligibility Statement. 2. Authrise the Executive Directr - Neighburhds t undertake nging adjustments t the Energy Cmpanies Obligatin Flexible Eligibility Statement when necessary t ensure cmpliance with future Gvernment guidance and effectiveness fr residents.

2 1 PURPOSE OF THE REPORT 1.1 T infrm Cabinet regarding changes t the Energy Cmpany Obligatin (ECO), a gvernment energy efficiency scheme designed t help reduce carbn emissins and tackle fuel pverty. It places an bligatin n energy suppliers t help husehlds cut their energy bills and reduce carbn emissins by installing energy saving measures. The Gvernment has made a cmmitment t have an energy supplier bligatin in place until 2022, with a fcus n fuel pverty. 2 IMPLICATIONS FOR SANDWELL S VISION Ambitin 1 Sandwell is a cmmunity where ur families have high aspiratins and where we pride urselves n equality f pprtunity and n ur adaptability and resilience. Adptin f an ECO Statement f Intent will enable all eligible residents t gain access t funding fr energy measures t their hmes. Energy-efficient prvide hmes will help t meet the needs f Sandwell's grwing ppulatin. Ambitin 2 Sandwell is a place where we live healthy lives and live them fr lnger, and where thse f us wh are vulnerable feel respected and cared fr. Energy-efficient hmes will help residents t save mney n fuel bills. Better standards f insulatin will keep hmes warmer fr lnger, helping families t benefit frm imprved living standards. Sandwell s Statement f Intent is specifically designed t help the mst vulnerable members f sciety. Imprved living cnditins culd help t ease the pressure n the NHS by reducing hspital admissins. Ambitin 10 Sandwell nw has a natinal reputatin fr getting things dne, where all lcal partners are fcused n what really matters in peple's lives and cmmunities Publicatin f a Statement f Intent will enable cntractrs t target suitable private sectr prperties in Sandwell fr energy imprvement measures. The cntractrs will be able t submit applicatins t energy cmpanies fr ECO funding and pass the savings n t residents. A Statement f Intent will demnstrate that the Cuncil is willing t adpt a flexible apprach t funding pprtunities.

3 3 BACKGROUND AND MAIN CONSIDERATIONS 3.1 The Energy Cmpany Obligatin (ECO) is a gvernment energy efficiency scheme designed t help reduce carbn emissins and tackle fuel pverty. It places an bligatin n energy suppliers t help husehlds cut their energy bills and reduce carbn emissins by installing energy saving measures. The Gvernment has made a cmmitment t have an energy supplier bligatin in place until 2022, with a fcus n fuel pverty. 3.2 The latest extensin f the scheme is called ECO2t (ECO2 transitin r flexible eligibility) and is expected t run until 30 th September 2018, during which time the Gvernment expects t have cnsulted n the future f ECO after that date. ECO2t sits alngside the main ECO scheme and is designed t supprt private sectr residents wh have previusly been unable t qualify fr funding. The main categries f private tenure targeted by the latest scheme are as fllws: a. Peple living in fuel pverty, particularly thse nt in receipt f eligible benefits b. Peple living n a lw incme and vulnerable t the effects f living in a cld hme c. In additin, a prprtin f nn-fuel pr hmes (in-fill) will be allwed fr Slid Wall Insulatin prjects, if: 66% f blcks f flats, terraces, adjacent prperties are fuel pr/lw incme and vulnerable t cld r: 50% f semi-detached huses r bungalws and tw premises buildings are fuel pr r lw incme and vulnerable t cld. 3.4 Lcal Authrities (LA) are respnsible fr determining eligibility criteria fr measures via what is knwn as a Statement f Intent (SI) which must be published befre any ECO2t scheme can be implemented. The SI is intended t state publicly the criteria that a LA intends t use t identify husehlds that meet the eligibility criteria under ECO2t and will need t demnstrate transparency and public accuntability. 3.5 When a recipient has been identified, the Lcal Authrity is respnsible fr issuing declaratins f eligibility. A declaratin is a statement, in writing, issued by the LA, which is required t demnstrate that the LA has been cnsulted and that it cnsiders the husehld t meet the eligibility criteria fr the scheme. A declaratin must be in place befre a measure can be installed.

4 3.6 Measures included within the scheme culd include lft insulatin, cavity wall insulatin, new bilers r central heating systems and slid wall insulatin. 3.7 Energy cmpanies are respnsible fr meeting their bligatins and ensuring that they, and any members f the supply chain acting n their behalf, cmply with the scheme requirements. OFGEM is the scheme administratr and respnsible fr setting suppliers bligatins using a calculatin based n their share f the gas and electricity supply market. 3.8 The Statement sets ut Sandwell Metrplitan Brugh Cuncil s Flexible Eligibility Criteria. 3.9 The Statement may need t be updated t ensure cmpliance with future Gvernment guidance Fllwing initial trial amendments may be necessary t make sure the Statement is mst effective fr husehlds in Sandwell. 4 THE CURRENT POSITION 4.1 The Cuncil des nt currently have a Statement f Intent. This means that it is impssible fr residents t access ECO-flex funding fr energy imprvements t their hmes. 5 CONSULTATION (CUSTOMERS AND OTHER STAKEHOLDERS) 5.1 It is nt necessary t undertake public cnsultatin t adpt a Statement f Intent. 5.2 If apprved, the Statement f Intent will be accessible t all via the Cuncil s website including interested delivery cntractrs and the general public. A cntact phne number and address will be prvided t answer any queries. 6 ALTERNATIVE OPTIONS 6.1 The alternative ptin wuld be nt t adpt a Statement f Intent. This wuld leave things as they are, meaning that cntractrs will be unable t ffer ECO Flexibility funding t residents. 7 STRATEGIC RESOURCE IMPLICATIONS 7.1 The cst f meeting the Cuncil s bligatins as defined in the Statement f Intent shuld be met within existing resurces.

5 8 LEGAL AND GOVERNANCE CONSIDERATIONS 8.1 There are n specific immediate legal r statutry implicatins arising frm the prpsal utlined in this reprt. 9 EQUALITY IMPACT ASSESSMENT 9.1 An Equality Impact Assessment screening exercise has been carried ut and a full Equality Impact Assessment is nt required. 10 DATA PROTECTION IMPACT ASSESSMENT 10.1 All data received by the Cuncil will be stred and managed in accrdance with relevant legislatin current at the time f cllectin Cntractrs shuld explain t applicants that their infrmatin will be passed t the Cuncil fr prcessing and that the Cuncil will hld details fr 12 mnths frm the date f registratin. A signed applicant agreement evidencing this must be btained by the cntractr and passed t the Cuncil Applicants shuld be aware that any cntract r agreement will be between them and the installer, nt Sandwell Metrplitan Brugh Cuncil. 11 CRIME AND DISORDER AND RISK ASSESSMENT 11.1 A risk register has been cmpiled and will be reviewed and updated n a regular basis. Arrangements are in place t effectively manage and mitigate the risks identified. 12 SUSTAINABILITY OF PROPOSALS 12.1 The prpsals set ut in this reprt are sustainable. Gvernment guidance recmmends that a Statement f Intent shuld be amended as necessary ver time t suit lcal requirements. 13 HEALTH AND WELLBEING IMPLICATIONS (INCLUDING SOCIAL VALUE) 13.1 The ptential t access funding available under the Energy Cmpanies Obligatin (ECO) shuld have the fllwing cmmunity benefits: Energy-efficient hmes will help residents t save mney n fuel bills. Better standards f insulatin will keep hmes warmer fr lnger, helping families t benefit frm imprved living standards.

6 Sandwell s Statement f Intent is specifically designed t help the mst vulnerable members f sciety. Imprved living cnditins culd help t ease the pressure n the NHS by reducing hspital admissins. 14 IMPACT ON ANY COUNCIL MANAGED PROPERTY OR LAND 14.1 There is n anticipated impact n the Cuncil s asset management plan r any land r prperty in Cuncil wnership. 15 CONCLUSIONS AND SUMMARY OF REASONS FOR THE RECOMMENDATIONS 15.1 Publicatin f the attached ECO2t Flexible Eligibility Statement n the Cuncil s website will allw cntractrs t request funding frm energy cmpanies fr Sandwell residents wh d nt qualify under standard ec Affrdable Warmth rules T summarise, residents may be eligible fr Flexible Eligibility where: the husehlder is a Private Sectr tenant r an wner ccupier. husehlders are nt n an Affrdable Warmth qualifying benefit (if they are, they qualify thrugh the nrmal Affrdable Warmth ec rute) husehlds have an incme f 27,200 r less savings are less than 8000 (single persn husehld), r less than 12,000 (mre than ne persn husehld) and the husehld is deemed t have high energy csts if the husehld scres 50 r mre using the table abve under Identifying husehlds in fuel pverty r there is ne r mre persn(s) in the husehld that has a qualificatin as identified under Identifying peple living n a lw incme and vulnerable t the effects f living in a cld hme 16 BACKGROUND PAPERS 16.1 Energy Cmpany Obligatin Guidance fr Lcal Authrities 16.2 Gv t Statistics - Sub-reginal fuel pverty data Sandwell MBC HECA Reprt 2017 H:\COMMISSIONING AND PERFORMANCE\CLIENT SERVICES\Energy\HECA\2017 HECA Reprt\HECA update reprt 2017 final.dc

7 17 APPENDICES: Appendix 1 - Statement f Intent Appendix 2 - LA Declaratin template Dr Alisn Knight Executive Directr Neighburhds