Agenda item

Opt-out of the Communal Heating and Hot Water System

Report of the Executive Director, Community and Children’s Services. (for Decision)

Late item – Middlesex Heating Opt-out.

The Chair has agreed to receive this report, of the Executive Director, Community and Children’s Services, and apologised for the late despatch, which had been necessary to ensure that the information was as comprehensive as possible. Members noted that this iteration of the report responded to the outstanding queries from the last meeting and the City Solicitor was in attendance for any further questions.  

During the discussion and questions on this item, the following points were noted:

The City Corporation can compel leaseholders to provide access to flats for inspections/surveys in respect of the replacement heating system. If there are a large number of access refusals then the project could still progress in terms of the pipework, and the heating system would still operate. As a last resort, an injunction could be sought to gain access.

In theory, a challenge to the reasonableness of costs, on the basis that those costs have been incurred contrary to the Corporation’s Climate Action Strategy, could be brought before the First-tier Tribunal but would be unlikely to succeed.

Removal of residents from the communal system increases the apportionment, making contributions from the remaining leaseholders higher.  This would also apply to future servicing and repairs costs and component replacement. It would also add an additional financial burden to HRA budgets.

No other City or out of City Estates would be able to opt out as they do not have communal systems. 

Middlesex Street Petticoat Tower was offered the Cadent Scheme but the take-up was low and the Square will not be eligible.

Members expressed some concern as to the highly technical nature of this matter, although they accepted that the current system was at the end of its lifespan.   There was some surprise at this being a gas installation, as it is far less popular, but a full comparison across various alternative systems had been provided.

A couple of Members were very concerned at having to take this decision, as it was would be imposing a system on a small number of residents, noting that the cost and inconvenience of allowing them to opt-out would be negligible.  A conflicting view was expressed in that a large majority are satisfied with the proposal. 

At 3.35 the Committee agreed to extend the meeting beyond 2 hours to conclude the business on the agenda.

On being put to the vote, 9 Members voted for and 2 voted against the proposal and it was RESOLVED, that -  the Communal heating and hot water system will  be installed to all properties on the Middlesex Street Estate, that are currently served by the existing communal heating system, as per leases under repair, with service charges for the communal heating and hot water system installation and future servicing costs recoverable from leaseholders.