Agenda item

To consider a report from the Head of Democratic Services that introduces information regarding the closure of White Rose Energy in 2020. The report focusses on the relationship with Robin Hood Energy and the reasons for the sale of that company, the achievements of White Rose Energy, the implications of its closure on residents in Leeds and any lessons learnt and future options for this type of arrangement in Leeds.

The report of the Head of Democratic Services provided information regarding the closure of White Rose Energy in 2020. The report focussed on the relationship with Robin Hood Energy and the reasons for the sale of that company, the achievements of White Rose Energy, the implications of its closure on residents in Leeds and any lessons learnt and future options for this type of arrangement in Leeds.

In attendance at the meeting for this item were:

·  Cllr James Lewis – Deputy Leader and Executive Member for Resources

·  Neil Evans – Director of Resources and Housing

·  George Munson – Senior Project Manager, Resources and Housing

Members of the Board were advised of the following points:

• White Rose Energy was established in 2016, under Nottingham City Council’s not for profit Robin Hood Energy Company and operated in Leeds for four years up to September 2020. The stated aim being to tackle fuel poverty through cheaper tariffs for customers in the city;
• There had been 8,500 customers, and the voids switching service was a positive aspect that tenants had benefitted from;
• It was noticed that Robin Hood Energy were in difficulties in April 2020, and a number of options were looked at to keep Robin Hood going. However, no buyer could be found. Leeds received a deed of termination for White Rose Energy in September 2020;
• All customers were moved to British Gas so that no customer was left without an energy supply or left using a ‘supplier of last resort’. Protections were negotiated which included; no penalty fees; honouring of debt management plans; no customers left behind. Leeds City Council was not able to communicate directly with customers, however there was liaison with Robin Hood. There were no final figures as to how many customers who were switched to British Gas remained with them;
• Leeds City Council have now engaged with the energy market and have found Energy Angels who are able to supply a one year contract for void switching to replace the service previously supplied through the Robin Hood Energy/White Rose Energy arrangement. It was noted that this was going well;
• Achievements had been made whilst White Rose Energy had been running, with lower tariffs for 8,500 customers who had made savings of at least £100 per year;
• Lessons had been learnt that the energy market was very competitive and difficult for a local authority to engage with successfully. However, it has raised awareness and customers are now extremely price sensitive, with people switching tariffs on a regular basis;
• There is a pressure to tackle fuel poverty and the team are now focussed on making physical changes to people’s homes to tackle energy efficiency, including insulation.

Member’s discussions included:

• Green Doctors Scheme – creating more affordable fuel for the city;
• Use of fuel vouchers;
• Difficulties in setting up energy companies in the competitive market of the ‘big 6’;
• The need to provide homes which are better equipped to deal with fuel poverty and climate change agenda.

The following points were noted:

• There is a focus on better energy systems for insulation to properties to tackle both fuel poverty and the climate emergency agenda;
• The HRA Capital Programme for the District Heating System is ongoing and work will progress for those who are unable to attach to the District Heating Scheme;
• The Council had partnerships with Calderdale and Bradford, however Wakefield had decided that the partnership would not be beneficial to them, and although Kirklees had been keen to join they were unable to do so;
• All 250 staff employed by Robin Hood Energy had been made redundant;

Members requested information in relation to numbers who had started tenancies on White Rose Energy.

Members were of the view that the Council needed to make the right investment for council properties, including tower block heating systems, which need upgrading.

The Chair thanked all for their contributions, and suggested that this item should remain on the Boards work programme for future meetings.

RESOLVED – To note the content of the report.