Meeting documents

Members will receive an update on the Green Deal Together Community Interest Company; the company set up so that the Council can use the Government’s National Green Deal scheme to support local people to make home improvements which help save money and energy.

This follows the information paper requested by the committee and considered at their meeting on 25th September.

Alex Day, Senior Sustainability Officer

Papers:

·         Green Deal update

Alex Day, Senior Sustainability Officer was welcomed to the meeting.

Ms Day explained that the Green Deal is a Government flagship programme which aims to tackle the energy efficiency of British properties and is a key measure in the Energy Bill.

The Community Interest Company (CIC) called Green Deal Together (GDT) is now a green deal provider which means they can offer green deal services to customers. GDT are also in the process of securing the legalities needed to provide finance to those who need to borrow finance to pay for the energy efficiency measures they wish to have in their homes.  GDT is looking to soft launch at the end of April taking a few customers who have already been involved in the Green Deal assessment through the whole process with a view to launch the complete service in the summer.

All 15 shareholders are now paid up members of Green Deal Together. Buckinghamshire County Council has representation on the Executive Committee.

During the update the following questions were asked.

There is concern about the number of Board members as if there are too many people on a Board it can be harder to reach a decision.  How many people are Green Deal Together employing, what is the cost and what are they delivering? The number of people that should be on the Board was debated.  Because each shareholder is Local Authority it was felt there was the need to have representation; hence the 15 members. In practice a large amount of the executive duties are made by the Executive Committee (a group of six Directors nominated from the Board).  The Executive Committee currently meets every 3-4 weeks leading up to the launch.  As an organisation, GDT currently employs four members of staff and are looking to recruit a further two people.  There are key points of contact for customer services/relations and the supply chain, as well as a Chief Operating Director and a Partnership Manager who liaises with Local Authority members.

It is possible to have an example of how GDT works in practical terms i.e. what is the process if a business would like to go green. GDT is a Community Interest Company so although it’s Board Members are Local Authorities, it is an organisation that is in the private sector and is very much driven by that perspective.  Green Deal finance is currently not available for businesses as the finance side of the non-domestic part of GDT has not been finalised as yet. An assessment of the property can take place to understand where changes may need to be carried out. There is involvement from Buckinghamshire County Council to make sure that the economic gain stays in the county.

Achievements so far include;

·         60 companies have shown interest in the Green Deal, 20 of which are from Buckinghamshire

·         Businesses have to become Green Deal accredited before they can become involved in Green Deal Together. Workshops to help businesses gain the accreditation status and drop in sessions for installers are taking place to find out how they can become accredited.

·         Further incentives for installers to get involved are also being looked into i.e. additional training.

It was difficult to get consumers to sign up to the Green Deal when the programme was free.  Consumers now have to pay for surveys, interviews and the installation and the charges are added to their property.  How many people are currently interested in the Green Deal? The national level of publicity around the Green Deal has not been good.  The programme was launched without a clear offer and process.  A key aspect of Green Deal is the assessment.  The consumer has to pay for the assessment but if some of the suggestions/measures offered are followed through, the charge is taken away.  It is important to remember that Green Deal is not just a finance aspect of the programme.  It is about making energy efficiency measures more attractive.  There is a lot of evidence to say that the ‘free’ aspect of the Green Deal put people off in terms of what was being offered was too good to be true. The finance aspect is about trying to make people realise the energy efficiency savings side of the programme and to look at it as home improvement in the round.

What evidence is there that the Community Interest Company is doing enough to stimulate the demand which is not there at the moment? Some funding has been secured through DECC’s competition for Local Authorities called Pioneer Places which enabled free assessments to be offered.  The possibility of a pilot to take the people who took up the assessment through the process is being looked into. There is also a healthy pipeline of people interested in the programme.  Consumers could potentially go to other Green Deal providers to carry on the process to secure Green Deal finance or to carry out energy efficiency measures finances through alternative means.  However, quite a few have wanted to stay with GDT because of the backing the company has from the Local Authority. A key aspect to the programme is about adding value and making it the best possible package of measures for that particular householder.  A lot of time is spent discussing the process with the homeowner to give an understanding of the programme and look at their specific needs.

What has Green Deal Together achieved to date? The Green Deal Finance Company (TGDFC) has completed the legislative process to become a Green Deal provider.

Is it surprising that there is currently limited access to the Green Deal programme.  Would it not have been more beneficial to have been able to advise the positives of what residents are going to gain from the programme financially, then the facts and costs to set the programme up? The Chairman explained that there was a Cabinet Member decision in February 2013 to agree investment in the Community Interest Company (CIC) to become a Green Deal Provider.  The Cabinet Member for Environment is to be asked to provide an update on the financials and background information on the decision.

The details of those who are prepared to pay or borrow finance versus free delivery related to the market analysis of customers preferences are to be circulated to Committee Members.

Action: Alex Day

The reports mentions keeping the economic benefits in the county and having a healthy pipeline 20 business in Buckinghamshire taking part in the pipeline and an application for Department of Energy and Climate Change (DECC) funding. There is a benefit to the county both economically and financially.

What is the anticipated take up of the Green Deal programme as there is the move from summer to winter? A low, medium and ambitious sales scenario has taken place in terms of the number of plans it might be possible to achieve. Achieving a medium sales scenario of 616 plans in the first year is felt to be realistic. It is about making sure that the assessments can translate into plans according to customer preference.

The report refers to massive business opportunities in Bucks.  How can the Authority ensure there is the correct representation on the Executive Board and the correct decisions are made both in terms of scrutiny and governance if it is one of 6 other Authorities on the Board? A full skills matrix of the Board has been carried out to look at what skills were required by the Executive Committee. A job summary of the skills required was then produced. Finance is a strong element of the Executive Committee.  Membership of the Board also an ex-insurance broker and a marketing and communications side to make sure the offer to the customer is clear.

Is there a connection between the Community Interest Company (CIC) and the Local Enterprise Partnerships (LEPs)? Close working has taken place between GDT and Bucks Business First (BBF) on the business engagement side. There has been less involvement with LEPs but future involvement has been recognised as part of the green deal overall.

There is a lot of work going into the Green Deal project.  Energy companies are offering free services i.e. cavity wall installation and double glazing etc.  Do you feel that there is a big project left for GDT to deal with?  The number of the lofts and cavity walls left to be filled is available if required. There are over 50 measures that the consumer can get under the Green Deal which the energy companies didn’t have to offer or offer for free i.e. heating, insulation etc. The list of measures is to be circulated to Committee members.

Action: Alex Day

Buckinghamshire has an elderly housing stock.  It is estimated that 70% of properties are not insulated properly. Some householders are not prepared to undertake services such as loft cavity installation as the energy companies do not offer assistance emptying their loft.  The offers need to be tailored to cover this aspect and assure householders that any inconvenience that occurs will be minimised.

What steps have been taken to ensure that the more vulnerable and harder to reach individuals are included in the programme and that they can afford it.  There are a range of mechanisms in place at different stages.  This is a Local Authority backed company who want to make sure that they provide the best for people.  This includes an understanding of the associated risks with finance.  The company takes out a level of insurance against each plan that will look to address any changes. It is difficult for the onus to be on Green Deal Together.  The homeowner needs to think about and understand the use of energy both now and in the future. A key part of GDT is to try to secure ECO for eligible householders.  ECO is Energy Company Obligation; energy companies are now obliged to put forward a certain amount of money to energy measures meeting certain criteria.  It is about trying to secure the best deal for householders which includes being able to access that finance subject to eligibility criteria.

If there is a change in the ownership of the property, does the new owner become liable for the Green Deal finance? There are a number of options available if the homeowner sells the property.  This includes paying off the finance left on the loan or transferring the finance to the new owner.

Marketing and promotion of the Green Deal programme appears to be very limited. Does GDT have an information role in terms of recommending bone fide installation companies? An information list of companies is held centrally which is available to members of the public.  GDT has a list of accredited supply chain companies.  The list will be made available via the GDT member authorities when it has been finalised and the service is up and running.

What is the cost of the GDT programme to Buckinghamshire County Council? There is a shareholding cost of £35,000 that has been paid up.  There are legal fees of £1000 to cover scrutiny of the contracts and 0.6 FTE officer time.  There are no ongoing costs apart from the officer time.

The Chairman said there is some uncertainty about the performance of the scheme at the moment.  Members of the Committee agreed that the following would be requested;

1.    The Cabinet Member for Environment is asked to provide an update on the financials and background information on the decision.

Action: Kama Wager

2.    The Committee will review and monitor the process in 6 months