Issue - meetings

Appendix 1 to the report is exempt from publication as it contains commercially confidential information (exempt under paragraph 3, Part 1, Schedule 12A of the Local Government Act 1972 (as amended)).

The Cabinet Member for Finance, Growth and Core Services introduced a report on the B&D Energy Limited Business Plan for 2023/24.

The Cabinet Member confirmed that the draft Business Plan had, as was the case for all the Business Plans on tonight’s agenda, been signed off by the respective company board and subject to scrutiny by the Council’s Shareholder Panel prior to being submitted for Cabinet approval.  The B&D Energy Limited Business Plan 2023/24 set out the company’s plans to deliver low carbon energy generation projects to help support a sustainable low carbon energy future for the Borough.  The report and Business Plan highlighted the key objectives to be delivered by B&D Energy over the coming year and beyond, together with the detailed financial analysis which was set out in the exempt Business Plan. 

The Cabinet Member advised that since its last Business Plan, B&D Energy had chartered a very challenging global market and accrued over 700 customers, delivered £25m of infrastructure and leveraged in more than £15m of grant funding.  While it had endured many growing pains and was still tackling legacy issues, the Cabinet Member commented that the prospects for the business to grow and reach profit remained credible.  The Cabinet Member also alluded to the review of B&D Energy in 2022 which provided independent assurance regarding the financial model and business case and re-confirmed that the economic and environmental case for heat networks was still strong, despite rising energy costs and inflation.  It was recognised that the coming five years would bring significant growth in the number of homes connected to B&D Energy and greatly assist the Council in meeting its decarbonisation targets and ambition to be the “green capital of the Capital”, especially with the completion of the new Barking Town Centre District Heating Scheme expected in June 2024.

Cabinet resolved to:

(i)  Approve the B&D Energy Limited Business Plan 2023/24 as set out at Appendix 1 to the report; and

(ii)  Delegate authority to the Strategic Director, Inclusive Growth, in consultation with the Shareholder Panel, to take all necessary action to enable B&D Energy to implement its proposals within the Business Plan and to agree any variations to the Business Plan, legal agreements or shareholder agreement as necessary, subject to the provisions of the Subsidy Control Act 2022.