Decision Maker: Executive Board
Decision status: Recommendations Approved
Is Key decision?: Yes
Is subject to call in?: Yes
Executive Board will be recommended to:
- Note the contents of the financial update on the scheme
- Approve the submission of an application to the Green Heat Network Fund for the next phase of the project and commit to an element of match funding from prudential borrowing (figure to be confirmed)
- Approve the submission of an application to the Heat Trust with a view to receiving accreditation later in 2023
Further to Minute No. 85, 23 November 2022, the Director of Communities, Housing and Environment submitted a report presenting the Leeds PIPES District Heating annual report which provided a review of the network’s performance over the past year and forecasted the anticipated performance in 2023/24. The report also recommended some related approvals from the Board which looked to support the continued expansion of the network and regarding the application process for accreditation from the Heat Trust with regard to the Trust’s customer standard scheme.
In considering the report and responding to enquiries, the Board received further information on the current position regarding the capacity of the network and work being undertaken which looked to increase capacity. The Board also received assurance around the actions being taken to mitigate any potential risks associated with the expansion of the network. Finally, it was noted that the network was on track to come into surplus.
(a) That the application to the Green Heat Network Fund for the next phase of extension for Leeds PIPES District Heating Network, be approved, with the balance to be met by borrowing; and with it being noted that a further report will be brought to Executive Board in 2024 seeking further approvals prior to the commencement of the works;
(b) That the necessary authority be delegated to the Chief Officer Financial Services, to enable the Chief Officer Financial Services to approve the funding of works to extend the network from Little Queen Street to Castle Street, with it being noted that a further report will be submitted to the Chief Officer Financial Services in relation to this decision;
(c) That the financial performance of the network, as outlined within the submitted report, be noted;
(d) That approval be given for the submission of an application to the Heat Trust for accreditation from its customer standard scheme by the end of summer 2023;
(e) That the progress made to date by the Council and Central Government on Heat Network Zoning and Regulation legislation, be noted, with it also being noted that a further report will be submitted to Executive Board in 2024 outlining the strategic approach together with the decisions required to implement this locally;
(f) That the underwriting of cash flow losses in Phase 3, up to a maximum value of £2m, in line with the approach taken for Phase 2, be approved.
Reason Key: Financial Impact>£500K;
Wards Affected: Beeston and Holbeck; Hunslet and Riverside;
Portfolio Holder: The Executive Member with responsibility for the environment portfolio
Contact: Joe Callin, Senior Project Officer Email: firstname.lastname@example.org.
Report author: Joe Callin
Publication date: 03/08/2023
Date of decision: 26/07/2023
Decided at meeting: 26/07/2023 - Executive Board
Effective from: 05/08/2023