Agenda item

Energy Switching Scheme - Update and Revised Recommendations

Decision:

(a)       That the report be noted;

 

(b)       That in light of the Medium Term Financial Plan and the acute need for the Council to reduce costs now and into the future, it is not considered appropriate at this time to run such a project; and

 

(c)        That early analysis of the outcomes of the Pilot in South Walesbe reported to the Committee as soon as possible.

 

Minutes:

The Head of Assets and Transportation introduced a report which outlined knowledge and recommendations from the National Energy Action, Consumer Focus and Welsh Government (WG) event which focussed on various models of collective energy switching.

 

            There were many barriers to switching tariff, which included perceived hassle, trust or mistrust of the companies involved and lack of access to internet comparison sites.  A Council-run scheme would give the residents trust in switching and a number of Local Authorities had been contacted during the development of the report that ran collective energy switching schemes.

 

            The WG and Welsh Local Government Association (WLGA) are currently working on a pilot with Cardiff and Vale of Glamorgan Councils which was intended to form the basis for a Wales-wide collective energy switching programme.  Further details on this were attached at Appendix 2 of the report.

 

            In conclusion, the Head of Assets and Transportation said that officers would monitor the progress of the pilot very closely, including analysing the first auction, scheduled for November, 2013.  In the event that this was deemed successful, the Council could consider a marketing campaign to prioritise the next auction run by Cardiff and the Vale of Glamorgan Councils.

 

            Councillor Paul Shotton said that he did not feel that it was appropriate at this time to pursue the setting up of a Council-run energy switching scheme which he said would not benefit residents who currently found themselves in fuel poverty.  He asked if residents undertaking wall or loft insulation improvements to their home could see similar savings.  Councillor Ian Dunbar asked whether information on how residents could reduce their energy bills could be made available at the Flintshire Connects Centres.   

 

            The Energy Manager agreed that setting up a Council-run scheme at this time would not benefit those residents in greatest need of support and there was a need to encourage those residents to switch energy suppliers in order to get the best tariff available to them.  He said that encouraging residents to insulate their homes was a priority for the Council as this would provide a great saving to residents.

 

            Councillor Chris Dolphin voiced his disappointment at the lack of progress to date and raised concerns over the costs outlined within the report which were much higher than other Local Authorities had spent on setting up an energy switching scheme.  He asked whether an update on the Cardiff and Vale of Glamorgan Councils pilot could be provided and said that he hoped the pilot would be successful to enable the Council to implement a similar scheme.

 

            The Energy Manager provided an update on the pilot and reported that the Councils had appointed Energy Trust Wales to procure an energy switching agent.  If the pilot was successful this would enable the Council to sign up to the scheme early in 2014.  The Cabinet Member for Public Protection, Waste & Recycling assured the Committee that a full overview of the scheme would be undertaken following the outcome of the pilot.

 

            Councillor Nancy Matthews asked whether the Council had considered submitting a bid to the WG for grant funding to enable an energy switching scheme pilot to be carried out in North Wales, which she said could benefit all residents across Flintshire.

 

            The Director of Environment explained that Cardiff and Vale of Glamorgan Councils had been successful in receiving the grant as part of the Regional Collaboration Fund.  The intention was that, if successful, this could be rolled out across Wales.  The grant awarded to North Wales had been fully allocated, including undertaking a review of Public Protection services across the region.

 

            Councillor Haydn Bateman asked if the introduction of smart meters could reduce energy costs.  The Energy Manager explained that the introduction of smart meters was due to commence soon.  He said that they may have a positive impact as the meters could provide information to suppliers on how residents use their energy. 

 

            In summing up, the Chairman said that the Committee were keen to introduce a scheme which would benefit all residents of Flintshire and there was a need for early analysis of the outcomes of the pilot in South Wales.  He said that progress had been made but it was felt that this had been slow and that there was a need for officers to ensure that if a scheme was adopted that it was targeted first to those residents most in need of assistance to reduce their energy bills.           

 

RESOLVED:

 

(a)       That the report be noted;

 

(b)       That in light of the Medium Term Financial Plan and the acute need for the Council to reduce costs now and into the future, it is not considered appropriate at this time to run such a project; and

 

(c)        That early analysis of the outcomes of the Pilot in South Wales be reported to the Committee as soon as possible.

 

Supporting documents: