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To award the contract for the
delivery of works relating to Warm Homes: Local Grant for the
period 1 November 2025 – 31 March 2028 to E-ON UK Green
Funding Solutions Limited.  The contract
to be awarded through the Fusion 21 Decarbonisation
Framework.

Reasons for the decision

The new Warm Homes Local Grant
(WHLG) will run from April 2025 for at least three years. WHLG
replaces the previous Home Upgrade Grant (HUG2) scheme, for which
delivery services were provided by E.ON.
 
Under the Department of Energy
Security and Net Zero (DESNZ) guidelines for WHLG, Local
Authorities are permitted to transfer delivery contracts from the
previous HUG2 scheme to the new WHLG. The transfer of delivery
contract was duly carried out and E.ON are currently delivering the
initial stages of WHLG.
 
Council has undertaken a soft
marketing exercise to identify any alternative providers who might
be able to provide equal or superior services to E.ON for the
remainder of the WHLG scheme. After reviewing the services offered
by several potential suppliers, there appeared be no advantage to
changing to an alternative supplier.
 
•             
In addition, there are several advantages to
remaining with E.ON for the remainder of the WHLG
scheme:
•             
E.ON performed extremely well for the HUG2 scheme,
exceeding the delivery targets, and are expected to continue to
deliver the same high standard.
•             
E.ON have supported Stratford-on-Avon District
Council with forecasting and specifications for delivery of the new
scheme.
•             
E.ON have resources available and are able to
complete works in line with funding timescales.
•             
E.ON can provide Stratford-on-Avon District Council
with a full turnkey solution which enables Council to offer a
broader range of upgrades to residents delivered by a range of
subcontractors.
 
The District Council is a
member of the Fusion 21 consortium and can therefore access the
Fusion 21 Decarbonisation Framework for the award of contracts to
fulfil the requirements of the Warm Homes : Local
Grant.  E-ON are registered on this
framework agreement and can be reappointed, as justified above and
in the accompanying Call-off Report.
 
The contract is for the period
1 November 2025 to 31 March 2028 and is of a value of
£1,959,786.15.
 

Alternative options considered

Stratford District Council is a
small authority with a limited resources allocated to this area of
work (0.6 FTE).  Consequently we require a third
party delivery partner offering wide range of services to
enable us to maintain our track record of high-performance in the
delivery of these carbon reduction and energy efficiency
installations/home improvements. These requirements
include:
 

A strong track record
of delivering installations for Home Upgrade Grant phases 1 and
2.
Wide scope of
available subcontractors to maximise the range of available measure
delivery options.
A large and robust
organisation resulting in resilient and consistent
delivery.
To have an existing
and efficient relationship with Act on Energy, resulting in ease of
workflow processes.
To have an existing
relationship with Warwick District Council which compliments works
planned under other funding streams (particularly
ECO4).
Familiarity with the
WHLG scheme requirements and reporting mechanisms.
Compliance with
accreditation schemes such as Trustmark.
Positive
recommendations from existing partners.
Full turnkey,
flexible service, enabling the District Council to obtain
additional support services as required.

 
E.ON fulfil all
of these requirements. What separates E.ON from other potential service delivery partners
is:
 
•             
Their existing working relationship with our close
partners (Act on Energy and Warwick District Council).
•             
Their national reach in relation to the range of
sub-contractors they are able to call
upon for installation – this will maximise the number of
District residents we are able to assist.
•             
Their flexibility in providing a fully customisable
turnkey solution which Council can adapt as required.
•             
Their strong track record in delivering
installations for the HUG2 scheme in a timely and efficient
manner.
•             
Their good performance under the Warm Homes: Local
Grant scheme work undertaken between April 202 and 31 Oct
2025.
 
An open tender of this work was
also considered however this was ruled out given the resources in
place for this are of work, the time and cost or this type of
procurement exercise and the risks associated with changing the
contracted provider during an existing and ongoing grant
programme.