Agenda item

Purpose

Purpose of the report is to recommend an improved system of managing gas and electricity supplies in local authority social housing dwellings when the property is void.  This report will highlight the benefits a new system would offer tenants and the Housing Revenue Account (HRA).

RECOMMENDATIONS

1.    That the Cabinet Member for Housing and Tackling Homelessness notes the positive impact of the pilot with Utilita which includes benefits to tenants and a more efficient process for officers and contractors.

2.    That the Cabinet Member for Housing and Tackling Homelessness agrees to a large scale pilot encompassing all of the housing stock for a maximum period of 2 years and request a report to be brought back evaluating the impact of the pilot with a view to making the scheme permanent.

3.    That the Cabinet Member for Housing and Tackling Homelessness delegates to the Director of Housing, Neighbourhood and Building Services to undertake all necessary and procedural actions to formalise the process for void energy management with a single supplier in the long term, undertaking a suitable procurement process if and when required.

4.    That the Cabinet Member for Housing and Tackling Homelessness notes that a review of Utilita's tariff rates will be undertaken on a quarterly basis, in line with the Energy Price Cap updates, to ensure that their rates meet or beat other available rates.

Mark Fitch, Head of Local Authority Housing and Meredydd Hughes, Assistant Director Building Services presented the report, the purpose of which is to recommend an improved system of managing gas and electricity supplies in local authority social housing dwellings when the property is void.  They highlighted the benefits a new system would offer tenants and the Housing Revenue Account (HRA).

Residents Consortium questions & comments

Maria welcomed the report and explained her personal difficulties with the utilities when moving into a property that had previously been empty.   She stated she was very much in favour of it.

Maria commented on the general issue of expensive utility standing charges and welcomed the news that vulnerable customers would be placed on priority services register.

Members' questions

In response to Members' questions, officers clarified:

·         During the pilot scheme, an update report will be brought back to the Cabinet Member for Housing and Tackling Homelessness in approximately 9 - 12 months to report on how the scheme is working, the benefits, and to outline any queries that may have arisen, with the intention of moving forward to a full tender process based on those learnings.  Regarding the information that is commercially confidential, updates will be provided in regular meetings with officers.

·         The current void process involves trying to ascertain who the current utility providers are, which can often be a difficult exercise.  When new tenants move in, they are informed who the providers were and they are then responsible for contacting them.  With the Utilita service, everything is done on an online portal, the tenants' details are entered online and Utilita proactively make contact with the new tenant.  A smart meter will have been fitted meaning the reading is sent through automatically. 

·         The Smart meters can be switched from pre-payment to credit but will be defaulted to pre-payment at the beginning of the tenancy.

·         Any savings, however they are derived, will be ringfenced for the HRA.  The HRA budget position remains under pressure so any savings made will be a helpful contribution to the deficit position.

·         PCC had received feedback from Together Housing in the northwest about their dealings with Utilita.  Their relationship was positive, particularly around  customer satisfaction with the process.  Other positive feedback was around Utilita working closely with the contractors providing the service.

Members' comments

Members expressed some concern regarding the default to a pre-payment meter especially for those tenants who may not have the best credit history and then may not be able to switch to the more affordable credit meter.  The process could potentially make some tenants financially worse off.  The suggestion was that the £36k savings from the contract with Utilita be ringfenced for the provision of energy top-ups for council tenants, in addition to any existing funds.

Members agreed with the report and recommendations.

Chair's comments

The Chair observed that the earlier the tenant is contacted about which type of meter they have, and the situation assessed to ensure they are not financially disadvantaged, the better.  This would be part of the review of the scheme.  He considered the scheme would be beneficial for tenants.  A confidential review would be undertaken after 3 months with a public report brought back to a decision meeting within 12 months.

Decision

The Cabinet Member:

1.     Noted the positive impact of the pilot with Utilita which includes benefits to tenants and a more efficient process for officers and contractors.

2.     Agreed to a large scale pilot encompassing all of the housing stock for a maximum period of 2 years and requested a report to be brought back evaluating the impact of the pilot with a view to making the scheme permanent.

3.     Delegated to the Director of Housing, Neighbourhood and Building Services to undertake all necessary and procedural actions to formalise the process for void energy management with a single supplier in the long term, undertaking a suitable procurement process if and when required.

4.    Noted that a review of Utilita's tariff rates will be undertaken on a quarterly basis, in line with the Energy Price Cap updates, to ensure that their rates meet or beat other available rates.