Carillion Appointed Preferred Bidder on Green Deal Energy Services Contract
Leading integrated support services company Carillion, advised by Centrus, has today announced it has been named as the preferred bidder for the Birmingham Energy Savers (BES) scheme.
This contract is a major milestone in establishing the Green Deal programme and in Birmingham’s ambition to drive the low carbon economy and create green jobs.
The eight-year BES contract is estimated to be initially worth up to £600 million, but has the potential to be extended to the wider West Midlands area under a framework agreement worth up to £1.5 billion over eight years.
Under the BES scheme, Carillion will work with Birmingham City Council as its exclusive delivery partner to improve the energy and carbon efficiency of up to 60,000 households across the City, together with schools and other non-domestic Council properties.
The scheme will give households affordable ways of improving their properties by fitting energy efficiency measures, such as insulation and new boilers under the UK Government’s Green Deal.
The Green Deal allows the cost of installing energy efficiency measures to be recovered in instalments through energy bills at no cost to home owners, where savings on energy bills equal or exceed the cost of improvement work.
Homes where savings are insufficient to cover the cost of improvements may be eligible for improvements under the Energy Company Obligation.