Green milestone as preferred bidder is named

By on 08/10/2012 in Cllr McKay, News

Birmingham City Council's efforts to tackle fuel poverty and make the city a cleaner and green place to live have taken a major step forward following a Cabinet meeting today (October 8).

Carillion Energy Services have been named as the preferred bidder for the Birmingham Energy Savers scheme, which will see up to 60,000 households across the city given an affordable way of have their properties improved fitted with energy efficiency measures such as insulation and new boilers by 2020.

Payment for the improvements is recovered in instalments through energy bills. Homes where the estimated saving on bills equals or exceeds the cost of the improvement work will qualify, and those that cannot achieve the “golden rule” may be eligible thanks to the Energy Company Obligation - a fund set up using money from energy firms to help those in hard to treat homes.

Cllr James McKay, Cabinet Member for a Green, Safe and Smart city, said: “We have signed a preferred bidder letter with Carillion Energy Services for the Birmingham Energy Savers scheme.

“This decision represents a major milestone in Birmingham's green ambitions, and demonstrates that the social justice and environmental agendas go hand-in-hand with each other.

“It will reduce energy bills for citizens by up to £300 per year - taking up to 40,000 people out of fuel poverty by 2015 - create jobs in the technology supply chain and ensure that there are less carbon emissions from the city.

“Fuel poverty affects an estimated 27 per cent of more than 400,000 households in Birmingham. This programme can make a huge difference, and given the savings are calculated on current energy prices which are expected to ruse, BES should deliver even greater support to hard-pressed families and businesses.”

A formal launch for Birmingham Energy Savers will take place shortly.

Nigel Taylor, Managing Director from preferred bidder Carillion Energy Services, said: “Birmingham Energy Savers is genuinely ground breaking and we are hugely excited to be named as preferred delivery partner. The strength of our bid is in how we will work with communities, our supply chain, small businesses and social enterprises such as Groundwork to deliver a very local solution which leaves as much economic and social value as possible in Birmingham.

“It is against this backdrop that we have committed to create and sustain at least 360 jobs through our own investment and skills training – and to generate many more employment opportunities by encouraging our business partners to invest locally in a range of new green energy facilities.”

Also at the announcement of the preferred bidder was Greg Barker MP, Minister of State for Energy and Climate Change, to formally award £2.6million of funding to Birmingham from the Core Cities Go Early programme, designed to kick-start activity on the Government's Green Deal.

He said: “Birmingham City Council is really taking the lead in reducing fuel poverty and making Birmingham cleaner and greener. The Green Deal will be a vital tool in helping the city reach its ambitious targets, allowing people to get energy efficient upgrades to their home and save money in the process. The funding we have given Birmingham will help kick-start the Green Deal and I'm excited by the council's plans to transform buildings and save energy.”

Ends

Notes to editors

The Birmingham Energy Savers project full business case outlines the following key facts and figures that relate to the scheme

Projected potential benefits of the programme are as follows:

– 350 full time equivalent jobs created/safeguarded for 15,000 domestic dwellings as part of the pathfinder programme by 2015, and 2,000 jobs for the wider programme by 2020
– 60,000 households benefiting by 2020.
– Annual saving in domestic fuel bills between £120 and £300
– Total annual savings for households and businesses of £1.2m (by 2015)
– 40,000 people helped out of fuel poverty (by 2015)
– 18,000 tonnes reduction of CO2 emitted per year (by 2015)
– In the first three years to 2015, the 15,000 houses will be improved as follows: 3,000 in year one, 4,500 in year two, 7,500 in year three

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