Purpose

Extension/ variation of
contract for services ADMINISTRATION OF
FINANCIAL SUPPORT FOR DOMESTIC ENERGY USE AND RELATED WORKS
(SHEBS) delivered by Act on Energy
(AOE).

Content

To extend the contract for
services due to end on 30 September 2025 to 31 March 2026, and to
include a provision for additional funds to be added if demand
exceeds available budget.

Reasons for the decision

AOE will be unable to award the
remaining SHEBS budget to eligible residents of Stratford-on-Avon
before the end of the contract on 30 September 2025. There is
approximately £90,000 remaining at the end of June 25 from a
starting fund of £190,423 (note this is made up of
£114,750 from 24-25 budget plus £75,673 carried over
from the previous contract for services due to being
unspent).
 
There is £135,000 for
25-26 and £135,000 for 26-27 in Stratford-on-Avon District
Council’s (SDC) budget for the project, and a new contract
for services was planned to be drawn up from 01/09/25 for AOE to
administer.
 
AOE are currently awarding
approx. £10,000 per month to eligible applicants for either
the energy grant element (£300 or £500 paid directly to
a household’s energy supplier) or the physical heating
element (up to £6000 for repair, replacement or installation
of heating for owner/ occupiers). So, based on this figure,
extending for a further 6 months is in line with the remaining
budget.
 
From a recent meeting with AOE
on 4 July 2025, their preference is to extend the contract for
services and not receive additional funds for SHEBS for 25-26 due
to the difficulty spending this year’s budget and the carried
over underspend. It would also be beneficial to vary the current
contract for services to ensure contingency if there was an
increase in application for this period due to unforeseen
circumstances i.e. a particularly cold winter period.
 
It is not in the interests of
SDC or residents of the district for AOE to hold money that is
unlikely to be spent in 25-26. This also better aligns with budget
setting and implementation for future contract for
services.
 
Therefore, the best option is
to extend the current contract for services with an included
variation to allocate additional budget for added
contingency.

Alternative options considered

Extend contract to 31
March 2026 only;
Extend contract to
31March 2026 and vary to include provision to add to the SHEBS
budget if demand exceeds remaining budget; or
Draw up contract for
services for AOE to deliver SHEBS with allocated budget for
25-26.