DD2168 Better Boilers – administration and closedown

1.1 Better Boilers was launched on 9 January 2017, to replace and repair inefficient and broken boilers in up to 500 owner-occupied homes of people in receipt of qualifying benefits (a proxy for fuel poverty). The scheme is managed and administered by the Energy Saving Trust (EST).

1.2 The planned closure date for new applications to the scheme was 9 June 2017. As this date approached it became clear that the capital budget would not be exhausted and there was still many fuel poor households which could benefit from the scheme. Therefore, the scheme was extended until August 31 2017.

1.3 As at 6 September 2017, 827 full-applications had been received and over 360 installations had been completed. Customer satisfaction is high (around 95 per cent), and a promotional video showing testimonials has been widely shared through social media channels. The scheme has already provided key insights which will help inform potential future schemes under the Mayor’s draft Fuel Poverty Action Plan.

1.4 The extension of the scheme’s closing date to new applications means that the scheme will not be finalised in the period originally set out in our contract with EST. GLA officers have therefore negotiated with EST a fixed-cost of £37,000 to undertake the remaining administration, management and close-down of the scheme (this is expected to be at the end of November 2017). Existing revenue funding from within the Development, Enterprise & Environment Directorate’s Home Retrofit budget will be used for this purpose (no new capital funding is required).

1.5 EST’s remaining management and close-down activities will include:

• providing telephone support to applicants who have submitted a claim

• liaising with Ecologic Energy (the scheme’s installer) and applicants around installation, follow-ups and any complaints

• processing and receiving claims up to the end of November 2017

• follow up activity around unclaimed applications – contacting customers to assess whether they still want to be supported through the scheme

• application validation and payment authorisation processing i.e. processing claims and verifying that paperwork is in order, and liaising with the GLA over auditing

• system closedown – providing a secure system which stops any further applications being accepted while allowing for application administration to continue

• final scheme reconciliation – once applications have been claimed/cancelled, providing a final report of applications made/claimed and any funds remaining, if applicable.

1.6 An exemption from the requirements of the GLA’s Contracts and Funding Code to seek competitive tenders for such services is sought, on the grounds that the supplier has had previous involvement in a specific current project or continuation of existing work that cannot be separated from the new project/work.

2.1 The proposed new contract between the GLA and EST will allow the successful completion of the Better Boilers scheme. Primarily it will allow the administration to deliver the remaining boiler installations and repairs in vulnerable households which have inefficient or broken boilers and are deemed to be in fuel poverty. The scheme was established to drive savings in CO2 and NOx across London by:

a. supporting up to 500 households in fuel poverty and preventing excess winter deaths

b. saving carbon. Replacing 450 inefficient boilers should save up to 331tCO2 per year

c. cutting an individual household's energy bill by an average of £150 a year, (depending on the size of the property and the efficiency of the boiler being replaced)

d. improving air quality. Each boiler installed through the scheme is ultra-low NOx (and must emit no more than 40 mg/kWh NOx, as per the requirements for new build energy performance standards in the London Plan).

e. reducing the risk of carbon monoxide poisoning

f. promoting behaviour change through the installation of new heating controls, and energy efficiency advice and support.

3.1 The GLA will take appropriate steps to ensure that there are no potential negative impacts expected on those with protected characteristics. Those with protected characteristics will gain from the positive benefits of this scheme in equal measure should their properties be selected, and there will be equality of access to participate in the delivery and benefit from the scheme, without discrimination. This scheme has a positive impact on lower income and fuel poor households directly through the direct grant support they receive.

a) Risks and issues

The key risks and issues for delivery of these projects are set out in the table below:

b) Links to Mayoral strategies and priorities

Continued administration of the scheme will contribute to meeting the following Mayoral priorities:

• London becoming a zero-carbon city by 2050

• investing in older homes to make them more energy-efficient

• restoring London’s air quality to legal and safe levels.

5.1 This decision seeks approval to award the contract to the Energy Savings Trust for the administration, management and closedown of the Better Boilers scheme for £37,000 The initial contract has been approved by MD 2057 for the total amount of £75,000.

5.2 Proposed expenditure is available to be used from the Home Retrofit budget within Housing and Land directorate and will be utilised in 2017/18 financial year. Any changes to this proposal, including a continuation beyond the period stated above (or a request for additional funds), will be subject to further approval via the Authority’s decision-making process.

6.1 The foregoing sections of this report indicate that:

• the decisions requested of the Director involve the exercise of the GLA’s general powers falling within the GLA’s statutory powers to do such things considered to further or which are facilitative of, conducive or incidental to the promotion of the improvement of the environment and social development in Greater London; and

• in formulating the proposals in respect of which a decision is sought officers have complied with the GLA’s related statutory duties to:

(a) pay due regard to the principle that there should be equality of opportunity for all people;

(b) consider how the proposals will promote the improvement of health of persons, health inequalities between persons and to contribute towards the achievement of sustainable development in the United Kingdom; and

(c) consult with appropriate bodies.

6.2 In taking the decisions requested, the Director must have due regard to the Public Sector Equality Duty; namely the need to eliminate discrimination, harassment, victimisation and any other conduct prohibited by the Equality Act 2010, and to advance equality of opportunity between persons who share a relevant protected characteristic (race, disability, gender, age, sexual orientation, religion or belief, pregnancy and maternity and gender reassignment) and persons who do not share it and foster good relations between persons who share a relevant protected characteristic and persons who do not share it (section 149 of the Equality Act 2010). To this end, the Director should have particular regard to section 3 (above) of this report.

6.3 Section 9.1 of the GLA’s Contracts and Funding Code (“Code”) requires that contracts with values of this level be awarded following the seeking of competitive tenders/should be called off from accessible frameworks. However, section 10 of the Code also provides that an exemption from this requirement may be justified where the proposed contractor has had previous involvement in a specific current project. Officers have indicated in section 1 of this report that this is the case here. The Director may therefore approve the proposed award of contract to EST and related exemption if satisfied with the content of this report.

6.4 Officers must ensure that appropriate contract documentation is put in place and signed by the GLA and EST before the commencement of the provision of services in question.