Energy Audit Voucher Scheme
North Lanarkshire Council · 18 November 2022
Back to Enterprise and Fair Work Committee — 18 November 2022 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
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North Lanarkshire Council Report Enterprise and Fair Work Committee Does this report require to be approved? ☒ Yes ☐ No Ref PH/YW Date 18/11/22 Energy Audit Voucher Scheme From Pamela Humphries, Head of Planning and Regeneration E-mail weiry@northlan.gov.uk Telephone Yvonne Weir Enterprise Manager 07508 001238 Executive Summary The purpose of this report is to seek approval to establish a new energy audit voucher scheme for North Lanarkshire based small to medium sized businesses which will provide up to £2,500 of financial support. The scheme aims to fund the costs associated with an energy audit to support businesses to save money on their energy bills and help them reduce their carbon emissions and help tackle climate change. Recommendations It is recommended that Committee: 1) Considers the contents of this report; and 2) Approves the proposal to establish an Energy Audit Voucher Scheme. The Plan for North Lanarkshire Priority Improve economic opportunities and outcomes Ambition statement (5) Grow and improve the sustainability and diversity of North Lanarkshire's economy
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1. Background 1.1 In February 2022, COSLA Leaders and Scottish Ministers agreed an £80m Local Authority COVID Economic Recovery Fund (LACER) to be provided to Councils. North Lanarkshire Council was allocated £5,149,000 from the national LACER Fund. 1.2 The funding is flexible and designed to empower local authorities to utilise funding where they consider this necessary or justified based on local circumstances. The guiding policy intent of the funding is to support local economic recovery and was acknowledged that Local Authorities are best placed to understand the needs of businesses and therefore will need flexibility to design and deliver interventions that best meet that local need. 1.3 Through the Local Authority Covid Economic Recovery (LACER) Fund, the Council allocated £1.750m for business growth and recovery linked to additional business start- up funding, expansion of business growth and recovery funding, support for energy efficiency audits and a temporary rates relief fund. While these measures were considered as part of the recovery from Covid they will also have some impact in supporting businesses with the cost-of-living crisis. 2. Report 2.1 Following dramatic changes in the energy market, caused by global events such as the war in Ukraine, businesses have faced significant increases in their energy bills such that for many the increases threatened their viability leading to potentially significant job losses. 2.2 Subsequently, on 21st September 2022, the UK government announced the Energy Bill Relief Scheme that details support for everyone on a non-domestic energy contract including: • businesses • voluntary sector organisations, such as charities • public sector organisations such as schools, hospitals and care homes who are: • on existing fixed price contracts that were agreed on or after 1 December 2021 • signing new fixed price contracts • on deemed / out of contract or variable tariffs • on flexible purchase or similar contracts The new measures will be applied to energy bills from October 1st and will last until 31st March. 2.3 With support only provided for six months it is imperative businesses in North Lanarkshire are provided with support to see how they can better utilise their energy usage to reduce their costs and improve the sustainability of their operations beyond the end of the Energy Bill Relief Scheme, should energy market conditions not have improved. 2.4 It is proposed to launch an Energy Audit Voucher Scheme to provide grant support to help businesses address specific, immediate priorities in direct response to the
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combined challenge of the rise in energy costs and the Climate Change Emergency, thereby enabling businesses to gain a bespoke audit of their business, buildings, processes, and practices to enable them to make changes that will reduce energy consumption and reduce their carbon footprint. 2.5 Specifically, eligible businesses can apply for grant funding to commission suitably qualified consultants to undertake an energy audit to: • Identify where large amounts of energy are being consumed and provide guidance of how to reduce energy consumption; • Investigate interventions to building infrastructure and that could reduce energy consumption and reduce the business’ carbon footprint; and • Advice on how to adapt their business model to deliver a new or amended service/product offering that reduces energy consumption. 2.6 The Energy Audit Voucher focusses on providing grant funding as a contribution towards the energy audit interventions outlined in 2.5. Grants will provide 100% of these costs (excluding VAT), up to a maximum grant award of £2,500 with one application per business permitted. 2.7 Applicant businesses (including social enterprises) must be based in North Lanarkshire and operate from commercial premises. Home-based businesses will not be eligible. Eligible businesses must also be a micro, small or medium-sized enterprise (up to 250 employees). 2.8 Where specific improvements requiring further capital or infrastructure expenditure are identified within the audits, officers will work with the organisation to identify potential sources of funding from both the council and other organisations. This will include the council’s Business Recovery and Growth Fund which can provide up to 50% towards eligible projects costs with a maximum of £50,000 award available over a rolling 2-year period. 3. Measures of success 3.1 North Lanarkshire Council continues to play a leading role in supporting local Small to Medium-sized Enterprises (SMEs) and aiding their sustainability, growth and prosperity. The Energy Audit Voucher Scheme will ensure a minimum of 100 businesses receive an Energy Audit, providing them with actionable ways to reduce their operating costs. 4. Supporting documentation 4.1 None. Pamela Humphries Head of Planning and Regeneration
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5. Impacts ( http://connect/report-template-guidance ) 5.1 Public Sector Equality Duty and Fairer Scotland Duty Does the report contain information that has an impact as a result of the Public Sector Equality Duty and/or Fairer Scotland Duty? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? If Yes, has an assessment been carried out and published on the council’s website? https://www.northlanarkshire.gov.uk/your-community/equalities/equality-and-fairer- scotland-duty-impact-assessments Yes ☐ No ☐ 5.2 Financial impact Does the report contain any financial impacts? Yes ☒ No ☐ If Yes, have all relevant financial impacts have been discussed and agreed with Financial Solutions? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? The total budget for the programme is £250,000 which is funded entirely through the Local Authority COVID Economic Recovery (LACER) funding received by the council from the Scottish Government to support local economic recovery. 5.3 HR policy impact Does the report contain any HR policy or procedure impacts? Yes ☐ No ☒ If Yes, have all relevant HR impacts have been discussed and agreed with People and Organisational Development? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.4 Legal impact Does the report contain any legal impacts (such as general legal matters, statutory considerations (including employment law considerations), or new legislation)? Yes ☐ No ☒ If Yes, have all relevant legal impacts have been discussed and agreed with Legal and Democratic Solutions? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.5 Data protection impact Does the report / project / practice contain or involve the processing of personal data? Yes ☒ No ☐ If Yes, is the processing of this personal data likely to result in a high risk to the data subject? Yes ☐ No ☒ If Yes, has a Data Protection Impact Assessment (DPIA) been carried out and e- mailed to dataprotection@northlan.gov.uk Yes ☐ No ☐
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5.6 Technology / Digital impact Does the report contain information that has an impact on either technology, digital transformation, service redesign / business change processes, data management, or connectivity / broadband / Wi-Fi? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? Where the impact identifies a requirement for technology, has an assessment been carried out (or scheduled) by the Enterprise Architecture Governance Group (EAGG)? Yes ☐ No ☐ 5.7 Environmental / Carbon impact Does the report / project / practice contain information that has an impact on any environmental or carbon matters? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? Businesses will receive support to identify ways they can save and better utilise energy which should result in reductions in carbon emissions. 5.8 Communications impact Does the report contain any information that has an impact on the council’s communications activities? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? The Energy Audit Voucher Scheme will be published on the council’s website and promoted on social media channels. 5.9 Risk impact Is there a risk impact? Yes ☒ No ☐ If Yes, please provide a brief summary of the key risks and potential impacts, highlighting where the risk(s) are assessed and recorded (e.g. Corporate or Service or Project Risk Registers), and how they are managed? The key risks which are assessed and recorded in the Service Risk Register are as follows: - Fraud: The council has robust grant processes in place. Grants are paid retrospectively following evidence of expenditure by the business. - Eligibility of grants for the scheme conditions. All grants are checked for compliance prior to payment to ensure there is no risk of non-compliance with funding rules and regulations.