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The Panel considered a report providing detailed information regarding the delivery
and successes of various domestic energy efficiency grants that were available to
low-income households and residents with qualifying health conditions.
Keith Parker-Larkin, Domestic Energy Efficiency Improvement Coordinator, attended
the meeting to present the report and assist the Panel with its enquiries. He was
responsible for administering the various domestic energy grants which were
available to residents of Colchester. The Panel received a presentation which
provided detailed analysis of the 3 Grant schemes which had been administered –
Local Authority Delivery, Phase 3 (LAD3), Energy Company Obligation, Local
Authority Flexible Route, Phase 4 (ECO4 Flex) and the Home Upgrade Grant, Phase
2 (HUG2).
The LAD3 Grant was a government backed scheme administered by the Department
for Energy Security and Net Zero (DESNZ) and was only available to owner-occupiers on gas-grid fuelled properties with an energy performance certificate
(EPC) rating between D-G. The Council had been awarded funds of £599,823.23 to
carry out surveys and install measures, with an additional award of £90,000 for
admin and management costs. The project had ended on 31 March 2023 and out of
a target of 57 properties, only 36 had achieved retrofit measures, which was due to a
number of factors such as market capacity of installers who were suitably qualified,
and delays to the scheme from the Council’s managing agents, Warmworks. The
grant funding of £277,584.12 which had not been spent was returned to DESNZ. A
wide variety of measures had been installed into properties under the LAD3 scheme,
and every property improved was required to have improved its EPC rating by 2
bands.
The HUG2 scheme was currently open until the end of March 2025, and was
available to properties which were off-gas only and had an EPC rating between D-G.
The Council had been awarded £2,060,000 which equated to an average spend of
£18,000 across 120 properties. Properties which qualified for the funding had been
identified and written to, and approximately 700 letters had been sent across a
number of areas, and potentially qualifying properties had also been identified and
written to. Applications for the scheme would be managed by the Councils agent
Warmworks, however, telephone applications were managed by the Energy Savings
Trust. The Council had carried out a number of promotional events, including events
in Community Centres, attending coffee mornings, however, interest in the scheme
had been disappointing. Marketing through paid social media posts was being
considered to try to promote the scheme, and it was considered that the current poor
levels of interest could be caused by mis-information and a lack of trust that the
letters which had been sent were genuine.
The ECO4 Flex scheme was a government backed scheme which was administered
by Ofgem, and which had £1billion available nationally each year until 31 March
2026. It was available to all property fuel types and was only open to owner-occupiers, private sector tenants and landlords. There were various eligibility routes
to funding under the scheme, meaning that it could be available to a much greater
number of properties that other schemes. Over 70 applications had already been
made under the scheme, which was higher than all the applications which had been
made under the preceding ECO3 scheme for Colchester, which was extremely
positive.
A Panel member shared the Domestic Energy Efficiency Improvement Coordinator’s
concerns that some residents would not believe that the offered support was
genuine. It was suggested that it may beneficial to consider the approach that had
been taken by other Council’s to emulate success which had been achieved
elsewhere. The Panel offered its support to help promote the various funding which
was available and invited Officers to ensure that Panel members were kept up to
date with any promotional events, the details of which could be passed on to their
residents. Panel members offered to use their social media channels to promote the
availability of grants, and would pass on details of suitable events in their wards to
the Domestic Energy Efficiency Improvement Coordinator.
The amount of £40,000 which had been spent on a single property was questioned,
and the Domestic Energy Efficiency Improvement Coordinator explained that
Warmworks had sent out a surveyor to visit the property who would have worked out
which measures were able to be installed, and in that particular case exterior wall
insulation had been fitted at significant expense. The decision on whether or not
such installations were considered to be cost-effective was not made by the Council,
but was down to the surveyors in each case. The Panel were assured that the
Domestic Energy Efficiency Improvement Coordinator’s post was funded until March
2024, and discussions were taking place for this post to continue into the future,
either on a full-time or part-time basis.
A Panel member noted the various issues which the Council faced when both trying
to promote the various funding which was available, and implementing
improvements in properties. The Panel heard that 25% of Colchester residents were
renting their property, and it was suggested that the Domestic Energy Efficiency
Improvement Coordinator should consider working with the Council’s own Private
Landlord Team to better reach both these residents and their landlords. Colchester
Borough Homes (CBH) had made good progress in this area as a volume social
landlord, and it was suggested that this organisation may be able to offer advice on
this subject. The Domestic Energy Efficiency Improvement Coordinator advised the
Panel that discussions were taking place with the Council’s communications team
around the best way to promote the subsidies which were available, and
consideration was being given to using paid for adverts on social media. It was also
intended to try to encourage referrals to be made to the schemes via healthcare
providers, as the benefits on health of warm homes were significant. It was noted
that the uptake on the funding which was available had been disappointing
nationally, and the volume of schemes which were on offer was confusing to
potential customers. The Council had tried to simplify what was being offered to
residents through information on its dedicated webpages.
A Panel member questioned what controls were in place to ensure that money which
was spent on improvements to housing was appropriate and delivered value for
money. The Domestic Energy Efficiency Improvement Coordinator explained that all
money spent was subject to both internal and external audit, and would be
considered by either DESNZ or Ofgem who would ensure that any spend had been
acceptable. The Panel was assured that the Council was not directly responsible for
allocating funding of this nature under the current schemes on offer.
In discussion, the Panel wondered whether it would be possible to include the
guidelines for eligibility in communications concerning the schemes. It did consider
that it would support the idea of paid for advertising on social media channels, as if
messages were seen to be promoted by the Council as a trusted provider, this may
go some distance to alleviating fears which residents may have. Although it was
heartening that residents were becoming more aware of scams, this did mean that
greater effort was required on the part of the Council to provide greater assurance
that what was being offered was genuine.
RESOLVED that: the contents of the report be noted.