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Carillion Sign Green Deal Energy Services Contract

Leading integrated support services company Carillion, advised by Centrus, has signed a contract with the Birmingham Energy Savers (BES) scheme to deliver energy services as part of the Green Deal.

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 Government’s Green Deal.

As part of the partnership, Carillion has committed to create and sustain at least 360 jobs and to help 600 people from priority groups into placements, training and jobs, many through its own investment and skills training but also by encouraging its business partners to invest locally in a range of new green energy facilities.

The eight-year 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.

Commenting on the newly signed deal, Carillion’s Chief Executive Richard Howson, said: “Birmingham Energy Savers is a genuinely ground-breaking scheme and we are delighted to have agreed this contract with Birmingham City Council. We believe that in order to reach its full potential, the programme must fully engage with the community and this is why the next stage will focus on recruiting local people and businesses to deliver the scheme.

“By engaging with our supply chain partners, particularly local small and medium-sized businesses and social enterprises, we can deliver service solutions that create jobs and offer training and development opportunities to support the economic and social development of the communities in which we operate.”

Cllr James McKay, Cabinet Member for a Green, Safe and Smart city at Birmingham City Council, added: “This programme represents a major milestone in Birmingham’s green ambitions, and demonstrates that the social justice and environmental agendas go hand-in-hand with each other. It will reduce energy bills for citizens by up to £300 per year – taking up to 40,000 people out of fuel poverty by 2015 – create jobs in the technology supply chain and ensure that there are less carbon emissions from the city.”