Content

To appoint Switch 2 energy to provide
services under 2 contracts to support the management of the
communal heating system at the Council’s new build scheme at
Albion Street, Southwick: 

1.   
To provide metering and billing
services for the 49 flats at a cost of
£20,492.  The
contract is to run for 5 years from October 2023.

 

2.   
To provide maintenance services for the
communal heating installation at a cost of £54,904.  The
contract will not start until 12 months after building completion
(October 2024) and will run for 4 years.
 

Reasons for the decision

Adur’s new
development at Albion Street, Southwick will provide 49 flats for
social housing and is due to complete on 23rd October 2023. The
block has a communal heating and hot water system and Adur District Council (ADC) will need to take on
the new role of heat provider to tenants.
 
The Council is legally obliged to provide a
metering and billing service under the Heat Network metering and
billing regulations. https://www.gov.uk/guidance/heat-networks. The
inhouse capacity to manage this service
is not available and this needs to be provided by a specialist
company.
 
At present ADC does not have contractors
available with the capacity to maintain the complex communal
heating installation which includes communal boilers and pipework
to individual heat exchangers in tenants’ flats, so a
specialist service is required.
 
Switch 2 will be procured by direct call off
under the Procure Public framework which is a compliant framework
which the Council has access to,  and the contract terms have been approved
by the Council’s legal and procurement teams.

Alternative options considered

In-house delivery of the services was
considered however the necessary capacity within the council is not
available.
 
Alternative providers were considered however
Switch 2 is a market leader and value for money has been
demonstrated through the procurement framework.