Agenda item

RESOLVED: That the Committee

a)    Note the Mayoral Response.

b)    Will review the progress on the recommendations to the review in a year’s time.

c)    Support the proposal to write to the DECC and the GLA about the initiatives being carried out by the Council to oversee the use of communal heating systems in the borough.

3.1      Martin O’Brien (Sustainable Resources Group Manager) and Petra Der Man (Principal Lawyer - Housing, Housing & Litigation), presented the report to the meeting. The key points to note were:

·         The Committee’s review raised a number of important questions particularly in relation to the gap between predicted and actual performance of communal heating systems and heard evidence of problems associated with this in some systems within the borough in relation to overheating, reliability and the cost to residents.

·         The Committee’s review was also an opportunity to bring together a range of external industry and housing practitioners working in this area including from the Greater London Authority (GLA), the Association of Decentralised Energy (ADE), social housing providers, housing developers and architects.  The themes of the review were widely acknowledged by those participating and reflected experience elsewhere, particularly in relation to the need to ensure systems are specified properly and with a clear understanding of the whole life cost of design, construction and management.

·         The review aligned with work going on elsewhere, most notably the ADE’s Code of Practice for heat networks, published after the conclusion of the scrutiny review in July 2015. 

·         The visits by Councillors to Bunhill (London Borough (LB) of Islington), Pimlico District Heating Undertaking (PDHU) (LB Westminster) and South East London Combined Heat and Power (SELCHP) in this borough as part of the review has shown a positive viewpoint in respect of Communal Heating.

·         The review recognised the need for work to compare costs, heat loss, carbon savings etc. for communal heating systems. To this end, the Heat Trust is working on a Heat Cost Comparator which will provide a like-for-like comparison of the cost of heat in different systems. The comparator, which was reviewed by an independent committee of consumer groups, industry participants and government officials, will look at not just the unit price of fuel but also other variables such as boiler maintenance and replacement. 

·         Another initiative is that Lewisham has received funding from the Heat Networks Development Unit in the Department of Energy & Climate Change (DECC) to conduct a feasibility study in 2015/16 for a network from SELCHP to Goldsmiths College in New Cross.

·         Officers will look to write to the DECC and the GLA to inform them of the work Lewisham is doing to improve the performance and planning of communal heating systems in light of the review and spread this knowledge so it can have a wider impact.

·         Under the Equality Act 2010 there is no provision under the Act to cover deprivation in finances. However residents do have some mechanisms they can pursue under the law, for example, private long leaseholders (over 21 years duration) & including council/social tenants who have exercised their right to buy and their landlords have certain rights to challenge or substantiate service charges which would the cost of provision of heating via a communal heating system. Service charges must be limited to an amount that is reasonable. 

3.2      In response to questions from the Committee, the following was noted:

·         DECC have looked into setting up a national databases for all heat networks, but there is not one at present. As part of the SELCHP feasibility, Lewisham will look into whether it is possible to compile a local heat network database.

·         The definition of a ‘local development’ – as in 10 or more properties - is not in the gift of the local authority – it is a national policy. However Lewisham will not agree to a communal heat network if it believes that it is not a viable option as part of a proposed development.

3.3       RESOLVED: That the Committee

a)    Note the Mayoral Response.

b)    Will review the progress on the recommendations to the review in a year’s time.

c)    Support the proposal to write to the DECC and the GLA about the initiatives being carried out by the Council to oversee the use of communal heating systems in the borough.