Issue - meetings

A report from the Commercial Director is attached (Report No.95, agenda part two also refers). (Non key)

(Report No.92)

(8.40 – 8.45 pm)

Councillor Nesil Caliskan (Leader of the Council) and Councillor Ahmet Oykener (Cabinet Member for Property and Assets) introduced the report of the Commercial Director (No.92) seeking to establish how the Council wished to fund the remainder of Energetik’s business plan (tranche 2) and outlining the options the company had identified.

NOTED

1.         That Report No.95 also referred as detailed in Minute No.19 below.

2.         As set out in report, that Energetik was seeking guidance and approval to update the objectives and values of its business plan so that it might add to its primary goals the reduction of inequality in the borough by helping to alleviate fuel poverty.

3.         That the Mayor of London had issued a Fuel Poverty Plan earlier in the year which would need to be considered in going forward.

4.         The potential funding routes that had been identified by Energetik as set out in the report, for further consideration. Further detail was provided within the part two report containing exempt information (Report No.95 as detailed in Minute No.19 below referred). A further report would be presented to Cabinet early in 2019 for consideration of the preferred way forward for future funding options.

5.         The work which had already been completed by Energetik in the Borough and the developments in progress.

Alternative Options Considered: As detailed in Report No.95, containing exempt information, Minute No.19 below referred.

DECISION: The Cabinet agreed

1.         to note the different funding options set out in the report and confirm that the Cabinet’s preferred option aligned with that of the company.

2.         aligned with 1 above, to approve Energetik’s proposal to seek a formal proposal from the Mayor’s Energy Efficiency Fund (MEEF) to establish the details of such alternative funding.

3.         to note that change to the company’s primary goals and to agree to the company’s intention to update its business plan objectives accordingly.

4.         to note that a second paper would be submitted to Cabinet early in 2019 detailing the three practicable funding options set out in the report and recommending which funding option the company believed was most suitable and why. This would include details of any possible tariff reduction. The options would be subject to external financial due diligence (as was the case with tranche 1).

Reason: The updated delivery and phasing strategy at Meridian Water meant that assumptions and associated finances in the 2017 approved business plan needs to be updated. In doing so, the company had had the ability to re-assess the ways to finance Energetik’s second tranche of investment. The company had identified alternative finance solutions that offer the Council the ability to genuinely reduce heat tariffs by reducing retained earnings in business, thereby substantially increasing the social benefit generated by delivery of Energetik’s business plan. (Report No.95 also referred, as detailed in Minute No.19 below).

(Non key)