Decision details

Approval to enter into agreement with EON Energy Solutions Ltd in the form of a Memorandum Of Understanding (MOU) to work together to define an energy efficiency scheme to be delivered under the Energy Company Obligation 4 (ECO4), providing the insta

Decision Maker: Housing Portfolio Holder

Decision status: Recommendations Approved

Is Key decision?: No

Is subject to call in?: Yes


Details of decision: 


The ECO4 schemes provides SWT with an opportunity to improve the energy efficiency of housing stock for council and private residents in Somerset. The Council’s c5,700 homes are estimated to account for nearly one third of the Council’s own carbon footprint.


The Energy Company Obligation (ECO4) will run until 31st March 2026. The obligation will see around £1bn spent each year, for the four years, on whole house retrofit for homes that are the most energy inefficient which are also in fuel poverty. This gives SWT the opportunity to identify residents in fuel poverty, on low incomes, or with health problems living in homes with the worst EPC ratings.


To take advantage of ECO4, SWT issued a call for expressions of interest (EOI) from Energy Companies via the Supplying the Southwest portal and Contracts Finder on 7 July 2022, with a deadline for responses on 8 August 2022.


The EOI requested that Energy Companies make proposals for working with SWT under their Energy Company Obligation scheme. Responses were assessed based on their partnering potential for SWT and the level of funding they were offering towards the SWT scheme.


EON were the only Energy Company to submit a compliant EOI response and following evaluation of their offer, have been identified as a suitable partner. E.ON have delivered Energy Efficiency Measures for over 25 years and will commit to provide £20m of ECO funding to the project over a 4 year period. JJ Crump will be Eon’s contractor carrying out the works.


There is no financial commitment required from SWT and the agreement will be in the form of a Memorandum of Understanding (MOU) that will set out the terms and conditions of co-operation. SWT will ensure (with the support of Shape) that all liabilities are held by the contractor carrying out any works under an associated JCT Measured Term Contract.


It is recommended SWT enter into the agreed MOU with EON and a JCT Measured Term Contract with JJ Crump.


Reasons for proposed decision: 


This decision relates to a partnership with Eon for the use of their ECO funds for SWT homes. Therefore, this is not classified as a Key Decision and the contract value is nil.


The Leader of the Council can delegate the making of Executive Decisions to her Portfolio Holders or Officers as under Part 3 of the Constitution – Responsibility for Executive Functions - 3.1.5 – “The Leader shall determine how all executive powers shall be discharged. The Leader may: a) discharge any of those functions; or b) arrange for the discharge of any of those functions: i. by the Executive collectively, ii. by another member of the Executive, iii. by a committee of the Executive, or iv. by an officer of the Authority.”


Publication date: 17/01/2023

Date of decision: 17/01/2023

Effective from: 26/01/2023

Accompanying Documents: