Decision details

Feasibility work for Thornhill District Energy scheme

Decision Maker: Cabinet

Decision status: Recommendations Approved

Is Key decision?: Yes

Is subject to call in?: Yes


To consider the report of the Cabinet Member of Housing and Sustainability seeking approval to proceed with the preparation of a full business case and other preparatory works for the potential implementation of a district energy scheme at Thornhill.


Elements of this report may be considered as confidential as commercially confidential material may be used within the report, relating to business case assumptions.


(i)  To approve for the purposes of the Financial Procedure Rules, expenditure of £120,000 to undertake preparatory work in relation to the proposed Thornhill District Energy Scheme, including consultation with residents, securing planning permission, finalising ECO grant funding and preparations to tender for a Design, Build, Operate and Maintain contract in relation to the scheme, provision for which exists in the 2013/14 HRA revenue budget, with formal contract commitment decision making reports to be presented to Council by November 2013.

(ii)  Note that the detailed financial business case setting out the implications for the GF, HRA and tenants who will be connected to the scheme is currently being prepared and that this will be reported to Council in November.

Reasons for the decision:

1.  This is a significant opportunity to provide for a new heating and hot water system to one of the Council’s large housing areas of the City.

2.  The scheme has the potential to meet a number of the Council’s key strategic objectives by providing the opportunity for savings for residents on their fuel bills, a reduction in Carbon and the generation of a long-term revenue stream for the Council.

Alternative options considered:

1.  An alternative option is for the longer term development of a heating system upgrade in the Thornhill estate in anticipation of further ECO funding support being available post April 2015. This approach carries a risk that ECO funding may no longer be available for this purpose and that a delay would negate the highlighted scheme benefits.

2.  An option not to invest in this scheme would leave residents with inefficient heating and insulation, and not address fuel poverty.

Report author: Colin Rowland

Publication date: 15/10/2013

Date of decision: 15/10/2013

Decided at meeting: 15/10/2013 - Cabinet

Effective from: 23/10/2013

Accompanying Documents: