Agenda item - Housing Revenue Account Energy Strategy

Report of Executive Director for Neighbourhoods, Communities & Housing (copy attached).

(1)            That the Housing and New Homes Committee welcomes and approves the HRA Energy Strategy as set out in Appendix 1.

(2)            That a progress report is brought to the Housing & New Homes Committee a year from now to update the committee on progress with the delivery of the strategy.

67.1   The Committee considered a report of the Executive Director, Neighbourhoods, Communities & Housing which attached the Housing Revenue Account (HRA) Energy Strategy for consideration. The strategy outlined the current energy efficiency performance of the stock and set out approaches for future improvement.  The report was presented by the Home Energy Efficiency Project Manager.   

67.2   Councillor Druitt proposed the following amendment which was seconded by Councillor Gibson as follows:

“To amend the recommendations and add the following as shown below in bold italics:

2.1 That the Housing and New Homes Committee welcomes and approves the HRA Energy Strategy as Appendix 1.

2.2 That a progress report is brought to the Housing and New Homes Committee a year from now to update the committee on progress with the delivery of the Strategy.”

67.3   Councillor Druitt welcomed the report which he considered important and timely. He was pleased to see that Brighton & Hove compared well with other local authorities with regard to progress in alleviating fuel poverty and decarbonisation of the city’s energy supply.

67.4   In response to a number of questions from Councillor Druitt, the Home Energy Efficiency Project Manager responded as follows:

• Household income was very much part of the strategy. There was a twofold approach, firstly tackling the buildings technical missues and secondly supporting energy saving advice services, such as the SHINE project and the Sussex tariff. 
• The reference to carbon emission reductions slipping, related topressure at national level where the carbon budgets that are set in line with the Climate Change Act 2008 are set to be missed.
• The reference to digital services was flaggingthe potential risk that Smart Homes would be coming forward in the 2020’s and council tenants could potentially be disadvantaged by not having the digital services and Smart devices that other residents may have in the city. There would be a need to manage that risk so tenants could be supported in a digital age.
• With regard to the fuel poverty regulations, the suggestion that there should be a more ambitious target could be discussed in plans going forward. This was not something the strategy was excluding or setting at this stage.
• With regard to partnership working, BHESco (Brighton & Hove Energy Services Co-op) have  been working with council officers on the SHINE project which was EU funded and officers would be looking to integrate with local energy companies and promote them where it was relevant. 
• Renewables were very much part of the planning at strategic level.
•  Grid capacity would be a factor where the council might implement further solar pv. This is a council wide issue.  Colleagues working in the International & Sustainability Team had been in contact with UK Power Networks about the council’s capacity.
• The Home Energy Efficiency Project Manager had no involvement in the Rampion Wind Farm.  
• The Home Energy Efficiency Project Manager would provide a written response on the question relating to the Heat network studies undertaken on HRA property at Eastern Road (DA5) and Clarendon Road (DA6).
• The reference to the decarbonisation of the energy supply referred to the national government Clean Growth Strategy. In order to achieve the council’s proportion of national targets in line with the Climate Change Act, it was recognised that most buildings would have to have their heating decarbonised which meant moving away from fossil fuel and combustion processes and moving towards heat networks and heat pumps, for example. It is a 2050 ambition in line with the national legislation.  
• With regard to next steps, work would be carried out on further consultation and delivery plan. A procurement for consultancy support would be included in developing the delivery plan and reported to committee. 

67.5   Councillor Bell asked if and when the strategy would be taken to the Area Panels. He expressed concern that some of the factors in the report would affect leaseholders, whose properties made up 20% of the housing stock. Councillor Bell asked if leaseholders had been consulted. The proposals could cost leaseholders a large sum of money and the council needed to engage with them to see if they were able to afford to implement the changes set out in the report. Councillor Bell asked if the move away from the use of plastic had been incorporated in the report.  Officers advised that they were aware of the financial implications for leaseholders and they would be consulting with leaseholders and tenants. A version of the report was taken to the Area Panels and there was subsequently a further meeting with Area Panel members the previous week. Officers had not yet taken on the wider ecological implications of the use of plastics and this would be taken on board.

67.6   Councillor Atkinson asked for more information with regarding page 75 – renewable energy from heat pumps and page 76 – SHINE bid providing an energy advice service.  Officers advised that heat pumps were a renewable energy source. They will take and extract heat from water, ground or air. It was possible that in the future a gas boiler would be replaced with a heat pump. The SHINE project was running in council housing up to 2020 based on EU funding. The project was offering financial inclusion advice to up to 250 tenants and leaseholders, as to how they could save energy and money in their homes. The council was also looking to recruit some volunteer energy champions and train those people in the tenant/leaseholder group so they could provide further advice.  There was also a pilot to provide some smart controls with some new boilers.

67.7   Councillor Wealls commented that the strategy was a series of ideas rather than a plan of action.  He felt there was a need for an action plan. He would support the Green amendment.

67.8   Councillor Hill considered that the strategy was a good start and in time would change into something more tangible. With regard to household income, Councillor Hill stated that there were many references to fuel poverty in the report. This was the HRA strategy so it did not cover all housing in the city. Page 75 referred to the HRA application for further EU funding. She asked if officers knew the result of the application. Councillor Hill commented that the Area Panels had not seen the full strategy report and should be allowed to see it if that was requested. Officers responded by explaining that the EU funding bid was for a project called Solarise. This bid had been led by colleagues in the Sustainability International Team. It had been hoped that officers would have heard about the bid by the end of 2017 but the bid had to be resubmitted just after Christmas and a decision was expected in the next two months.

67.9   Councillor Gibson referred to the points about household income. Fuel poverty could be addressed by improving fuel efficiency and raising income. Page 47 of the report stated that “household income is under a separate remit and not in the scope of this strategy.” It was important to recognise that a significant part of the equation was improving people’s household incomes and addressing poverty. Councillor Gibson was positive about the strategy but agreed with Councillor Wealls that it needed to be more definite and focused. There was an opportunity for Brighton & Hove to be an exemplar in combating fuel poverty and decarbonising and localising energy supply. 

67.10  The Chair asked the Home Energy Efficiency Project Manager to send any written responses to all members.

67.11  RESOLVED:-