Purpose

This report sets out the recommendation to enter into a two-year
transitional agreement post expiry of the current PFI concession
agreement. The new agreement with the existing provider will run
from October 2025 to October 2027, the extension will ensure the
current provider meets all their obligations post concession
agreement expiry, the heat network is functional and allow the
Council the time to develop a decarbonisation and expansion
strategy and comply with new heat networks and energy
legislation.

Content

DECISION
 
1.   
Authorise the Corporate Director of Housing and Regeneration
in consultation with the Mayor to enter into a 2-year transitional
period to extend the existing agreement under appropriate
commercial terms.
 
2.   
Note a detailed decarbonisation and expansion strategy will
be developed.
 
3.   
Note a future report will be brought to Cabinet for approval
to reprocure a new long-term contract from 2027.
 
Action by
CORPORATE DIRECTOR OF HOUSING AND
REGENERATION (P. PATTERSON)
Head of Sustainability (A. Khan).