Decision

District Heating Update and Partnership Procurement

RESOLVED that:-

(a )     Cabinet agree that the council’s preferred delivery option for District Heating is Model 3 (Supply Framework). Under this model the Council will enter into a framework agreement with a Heat Provider and agree a form of connection and supply agreement to be used for the supply of heat to the Council across the eight towns, namely Alnwick, Ashington, Berwick, Blyth, Cramlington, Hexham, Morpeth and Prudhoe on a town-by-town basis as the schemes go-live;

(b )     Cabinet approve a procurement exercise to select and appoint a legal and commercial advisor to support the procurement activities needed to appoint a Heat Provider. The forecast cost of the external legal and commercial advisor support is ~£160,000, which it is expected will be 100% funded through the NELEP Energy Accelerator Fund at no additional cost to NCC. In the unlikely case that the NELEP do not fund the project a separate request for NCC to provide funding will be made;

(c )     Cabinet resource and undertake a procurement exercise to appoint a Heat Provider;

(d )     Cabinet agree to the inclusion of the council’s future heat load to be in scope for commercially viable District Heating schemes in each of the eight locations, provided the commercial, economic and net zero tests are met by the Heat Provider; and

(e )     the timescales for delivery given market competition, be noted.