Agenda item

Report ES13014

In October 2008, the Executive agreed to establish a ring-fenced Carbon Management Fund to invest in energy efficiency projects, with the aim of helping to reduce the Local Authority’s carbon emissions by 25% over five years and avoiding unnecessary energy costs from the Local Authority’s operational property and street lighting.  Carbon Management Fund investments were repaid by savings made to energy budgets.  This allowed the Carbon Management Fund to be re-invested in further schemes and also ensured that the avoided energy consumption and costs of projects permanently reduced the Council’s revenue spend into the future.  The Sub-Committee considered a report providing an update on the progress of Carbon Management Fund projects.

Members were advised that the projects funded through the Carbon Management Fund programme were expected to cumulatively avoid over £1.1m in unnecessary spend by 2018/19.  Work to reduce carbon emissions and unnecessary energy costs would also reduce the impact of any increase in energy consumption and energy prices, which were expected to rise.  The Environmental Development Manager also noted that there were a number of areas that could still benefit from Carbon Management Fund investment, potentially realising a further saving of up to £821k per annum for the Local Authority at current energy prices which represented a £3.9m cumulative saving since the Fund had been established.

In considering the report, a Member thanked the Environmental Development Manager for an excellent report.  The Member was pleased to note the significant level of savings realised by the Carbon Management Fund and queried whether similar savings could be realised through more efficient use of heating.  The Environmental Development Manager noted that the price of gas was approximately 30% that of electricity and that the potential savings were greater in targeting a reduction in the consumption of electricity than in gas.

The Vice-Chairman queried the energy prices used to calculate the avoided spend in the Project Overview table.  The Environmental Development Manager confirmed that avoided spend was generally based on the unit price of energy when each project first started, and that if energy prices rise, the actual avoided spend would be higher than reported.  The Chairman requested that a graph comparing energy consumption by units used in the last 3-4 years be provided to the Members of the Sub Committee.

A Member also queried whether both academy and maintained schools could be supported to avoid unnecessary energy costs and reduce carbon emissions.  The Environmental Development Manager confirmed that schools were able to apply to the Salix Energy Efficiency Loan Scheme and to the RE:FIT Building Energy Efficiency Programme.  These schemes funded energy efficiency projects that recouped the cost of any loan within a fixed period and permanently reduced the energy costs of schools into the future.  The RE:FIT Building Energy Efficiency Programme was also project managed by another organisation, which would allow the school to concentrate its resources on teaching.  The Environmental Development Manager noted that a circular was being drafted to schools to provide further information on these projects and the opportunities they represented for schools.  This circular would also emphasise the non-financial benefits that could be realised by introducing energy efficiency measures, and Councillor Nicholas Bennett JP noted that Pickhurst Junior and Infant Schools had already benefitted from such a scheme and were monitoring the impact a more controlled environment was having on improving outcomes for pupils at the schools.

A Member queried why the cost of the Carbon Reduction Commitment Scheme was expected to increase significantly in 2014/15.  The Environmental Development Manager confirmed that from 2014/15, street lighting could no longer be exempted from the scheme.  The SON replacement Street Lighting project to introduce Light Emitting Diode (LED) lighting would support a reduction in energy use from existing lanterns. It was confirmed that the planned replacement of 8,000 lighting columns across the Borough would only be undertaken where existing columns were no longer viable.  The Environmental Development Manager also noted that, more generally, there would be some reduction in cost reflecting the Council’s reduced operational property portfolio which would no longer include Ann Springman and Joseph Lancaster Buildings or the Old Town Hall, and information on reduced consumption and costs would be provided to the Sub-Committee. 

RESOLVED that:

1)  The progress of the ten Invest to Save projects be noted;

2)  The contribution of the Invest to Save model in helping the Local Authority reduce its costs be endorsed;

3)  The scope for further savings made possible both by identifying new projects and accelerating the operation of the existing funds be noted; and,

4)  A further update report be provided to the Improvement and Efficiency Sub-Committee in January 2014.