Agenda item

Report of the City Surveyor.

The Board received a report from the City Surveyor in respect of energy and carbon-related matters.

A Member asked whether the City Corporation’s target to lower carbon emissions by 2027, as part of its commitment as landlord, would be achieved and if further assistance was needed from the Board. Officers explained that the biggest issue was identifying projects which had significant returns and an appropriate level of payback on capital investment. As soon as clarification on these projects were given then it would open up more room for further discussion.

A further question was raised regarding a reduction in operational activity since 2018-19 within the Markets and there was a concern that business had been ‘driven’ out of the Markets. It was advised that this reduction was due to the impact of the Covid-19 pandemic, and the reduced energy consumption during that period, and further savings to energy output were due to the closure of the Poultry Market.

The Chair asked for an update in respect of the DHL delivery trial pilot in Billingsgate Market and the Board were informed that the trial had a very low impact since only one electric van was available for use with the remaining vans being based in Harlow. Due to the journey from Harlow to Billingsgate each day, any energy savings consolidated were offset due to this inefficiency which therefore provided difficulty in conducting a full assessment of this trial.  Officers advised the Board that the service had been terminated and whilst there was some potential for further consolidation, the impact was very low.

In response to a point raised regarding a reduction in carbon intensity, officers agreed to provide Members with further data on energy use intensity at the next meeting and how this would be improved. A Member commented on the difference in energy usage between Billingsgate Market and Smithfield Market since Billingsgate represented 0% reduction in energy usage whilst Smithfield maintained a 45% reduction. Officers confirmed that both Markets were different, and Smithfield was the larger market and had more opportunity for performance improvement, whereas the same level of opportunities were not present at Billingsgate.

The purchasing of electricity contract and the disparity between the average day rate and night rate was mentioned and officers were asked to provide clarity on the matter. Officers notified the Board of a risk strategy regarding purchasing which enabled the City Corporation to ‘forward purchase’ to anticipate peaks in the energy market. Energy had been purchased across portfolio properties and not on an individual basis, and the figures of the report did not include the range of benefits of the Power Purchase Agreement (PPA) which officers confirmed had been bought at a reduced rate. However, it was mentioned that the PPA provided a benefit of approximately £1.8 Million in credit to the Markets in the previous year.

RESOLVED, that – The report and its contents be noted.