DECC Local Authority Funds
ANNEX A
Application Form
Local Authority Competition
APPLICATION FORM
Please note: completed bids should be submitted by 5pm on 30th November 2012 by email to
xx.xxxxx@xxxx.xxx.xxx.xx
SECTION 1: To be completed by all applicants
1.1 Applicant Details
Lead Local Authority
Name of Local Authority
Exeter City Council
Name of contact within
REDACTED
the Local Authority
Address
Exeter City Council,
Civic Centre,
Paris Street,
Exeter
EX1 1JN
Telephone number of
REDACTED
contact
Email address of contact
REDACTED
Other participating Local Authorities (add rows as needed)
Name of Local Authority
Name of contact within
the Local Authority
Address
Telephone number of
contact
Email address of contact
2
Local Authority Competition
1.2 Proposal Summary
Describe the proposal and how it will be delivered. What will it achieve? Who will it
benefit? (max 300 words)
Exeter Together has been developed by Exeter City Council and UK Together to provide
Exeter's 120,000 residents with an opportunity to participate in collective switching, and also
to join in a combined switch with other areas of the UK.
The project partners in Exeter Together include UK Together (a partnership between
energy
share, the Eden Project, and uSwitch, supported by Cornwall Council), and others
including Exeter CVS, Exeter CAB and Exeter Age UK.
Exeter has an above national average number of households in fuel poverty (over 18%) and
a large private rented sector. There is a high level of deprivation in Exeter, with 9 LSOAs
being amongst the most deprived in England using the IMD. Fuel poverty is a significant
issue for many households in Exeter. The Council is committed to providing a safe and
secure home for citizens, and getting best value for the tax-payer by improving the delivery of
its services and investing sustainably and strategically to secure the future of the city.
Enabling communities to exert influence over the price of a basic need such as fuel, helps
achieve the aims set out in the Administration’s manifesto.
We will bring together individual participating households to form a collective, separated into
different groups based on their preferences, fuel type and payment method. Energy
suppliers will be able to bid for each lot by putting forward their most competitive offer. The
lots include households on dual fuel and single fuel tariffs, households that are on a pre-
payment meter and those wishing to choose a renewable energy tariff; ensuring that each
household is given the best deal possible. All households will also receive a whole of market
comparison, to ensure that they are advised of the best deal available to them if this
happens to be outside of the collective switch.
1.3 Stakeholder Engagement
Describe how your proposal has been developed and will be delivered with local
partners – to ensure that delivery of measures reflects local conditions on the ground.
(max 200 words)
3
Local Authority Competition
1.3 Stakeholder Engagement
The project will need to reflect the needs of the local communities and have the support of
key local, relevant organisations in order to generate significant levels of participation. By
working with UK Together (an experienced national energy purchasing collective with a local
focus) the local expertise and knowledge of Exeter City Council will be combined with the
resources and experience of larger delivery partners, to secure the maximum benefits for
local residents.
The Council and UK Together will work closely to identify additional local delivery partners to
assist with delivery and to help achieve high levels of community engagement, with a key
priority being the identification and targeting of vulnerable residents. The partners will
develop a strategy to locate and support those households in fuel poverty or in receipt of
benefits and those on a low income, as well as those without access to the Internet or using
prepayment meters. This will include referrals from local community centres in some of the
most deprived areas (including Wonford, St Sidwells, St Davids and Exwick), NHS Trusts, the
CAB and other debt advice services, church groups and parish councils, large employers,
educational institutions and local charities and community groups.
1.4 Value for Money
Demonstrate how the proposal will ensure value for money and generate net
benefits.
Value for money will be achieved by adapting and utilising key UK Together assets and
resources, which were developed as part of Cornwall Together, through the use of a
bespoke UK Together toolkit. Tools include web functionality, marketing and communication
materials, legal templates, management support, and open access to a UK Together Hub,
and will ensure our scheme is deliverable within the set timescales. Exeter Together will
also utilise local resources allocated to Cornwall Together, meaning significant efficiency
savings will be made. This will allow us to focus on ensuring that the resources best meet
the needs of Exeter’s residents and that maximum resource is allocated to helping reach
and engage our most vulnerable households.
The Councils and UK Together plan to work closely with a variety of relevant local
organisations, including Exeter CVS, Exeter Age UK, Exeter Community Initiatives, Exeter
CAB and community centres located in the most deprived areas of the city. This will help
ensure additional value for money due through efficiencies in delivery as a result of their
detailed local knowledge and where the scheme stimulates demand for additional services
(such as energy efficiency measures) through the holistic approach, the local economy will
benefit. In addition, an agreed percentage of the switch fees generated through the project
will be used to support a fuel poverty fund, to help maximise the benefits for local people
and facilitate the desired holistic approach to reducing energy bills through other means,
e.g. income maximisation services.
The project will draw on the experience of UK Together in the delivery of Cornwall Together,
4
Local Authority Competition
1.4 Value for Money
and the Council will work closely with the UK Together team to identify the most effective
approaches to delivery, ensuring value for money is considered in all decisions.
The UK Together model of harnessing national partners and market power whilst focussing
on local delivery will enable us to ensure that we achieve good value for money in
negotiating the best deals for our residents whilst ensuring operational best value. We will
also combine our switch with other UK Together projects to aggregate a potentially large
number of households across the UK, to try and ensure an enhanced offer from energy
suppliers; potentially delivering even greater savings for our residents through increased
competition. This will help to provide best value and will support our aim of helping to bring
people out of fuel poverty.
The project will also utilise existing partnerships and channels that focus on older people,
health and affordable warmth and will involve signposting and referrals to these
organisations are made where appropriate. This will help to ensure value for money, as
vulnerable residents will potentially see wider benefits from their engagement with the
scheme. The Council is the lead partner in the CosyDevon insulation scheme which has
delivered 15,000 energy efficiency measures throughout Devon (3,500 in Exeter) over the
past 3 years (the partnership is made up of the 8 district councils and 3 Unitary authorities
with CERT funding provided by E.on and has potential to act as a vehicle for expanding
delivery of the scheme to other Devon local authority areas. The Council also works in
partnership with Dorset Energy Advice Centre to deliver a landlord energy efficiency
scheme, (PLEA) funding insulation and boiler replacement in privately rented properties.
Over 500 properties have benefited from one or more measures over the past 4 years and
referrals to these schemes will form part of the referral network and help to ensure wider net
benefits and additional value for money.
1.5 Project Milestones
Please give a brief summary of the key milestones from your project plan (including
dates). The project should plan for delivery by 31st March 2013. Describe briefly who
will deliver it and what will have been achieved by that date and an assessment of
the risks to delivery.
5
Local Authority Competition
1.5 Project Milestones
All elements of the project will be delivered by the key partners; Exeter City Council and UK
Together. UK Together’s constituent partners are energy
share, the Eden Project, uSwitch
and Cornwall Council. A wide range of additional local partners will also be involved in
delivery.
December 2012 - Identification of existing and prospective local partners, initial project
meetings, production of marketing strategy and full week-by-week project plan,
development of website and digital platform, set up and testing of Freephone number and
marketing materials (e.g. Freepost flyer) and other internal processes.
January 2013 – Auction held, official launch of scheme, various local events held,
online/social media campaign starts, intensive radio/tv campaign starts, progress meetings
held.
February 2013 – Further progress meeting, push on marketing and advertising as end date
approaches. Initial evaluation of marketing channel success carried out and strategy revised
if required.
March 2013 – Offer letters sent, offers accepted, switches carried out, evaluation starts,
phase 2 plans commence.
The risks to delivery are similar to any project administered by a Local Authority that relies
on external delivery partners and successful resident engagement. These include:
Non-delivery by external partners – By choosing to work with UK Together our project benefits
from working with energy
share, the Eden Project, uSwitch and Cornwall Council, who
collectively delivered the only regional switching programme in the UK to date. By choosing
experienced partners with experience of developing and delivering a Local Authority-led
collective switching scheme who have the infrastructure and resources in place as well as the
expertise we are confident that the scheme can be delivered in the tight timescales specified.
Low levels of resident engagement – The scheme’s success will depend on significant
6
Local Authority Competition
1.5 Project Milestones
numbers of households across the area signing up and switching energy supplier. To ensure
that participation levels are high we will work closely with UK Together and our local partners
to develop a comprehensive promotional strategy to ensure that we reach all residents and
that messages are tailored to different groups and communicated clearly. And progress
against this will be assessed at regular intervals.
1.6a Proposal Funding
DECC has three funds from which Local Authorities can bid for support. Please
indicate which fund(s) you would like to bid for (and the amount) in the table below,
and continue on to the relevant part of the application form.
Funding (£000s)
Fund
Complete...
Capital
Programme
Total
Fuel Poverty Fund
0
0
0
Section 2 + 6
Green Deal Fund
0
0
0
Section 3 + 6
Collective Switching Fund
0
160.07
160.07
Section 4 + 6
1.6b Other sources of funding (where applicable)
Please provide details of other sources of funding for the project. 1.6a Proposal Fu
Funding source
Capital
Programme
Total
7
Local Authority Competition
1.6a Proposal Funding
8
Local Authority Competition
SECTION 2
SECTION 4
‘Cheaper Energy Together’ Scheme
4.1 Engagement with Vulnerable Consumers
Describe how the proposed scheme will effectively engage with vulnerable consumers
and the approaches that will be taken. Describe who the customers are and how many
you expect to engage with. (max 200 words)
A range of strategic partnerships are essential to engaging the entire community in collective
switching and also ensuring that the right approaches are taken when identifying and
supporting vulnerable households. UK Together’s ability to build effective partnerships with
key organisations will help to ensure a wide variety of targeted engagement activities. Local
partnership organisations such as Exeter Age UK, Exeter CAB and Exeter Community
Initiatives will provide their dedicated local knowledge of communities and help provide access
to some of the hardest to reach households.
Although open to all, Exeter Together will focus effort on disadvantaged communities and
those where additional support services are required. Vulnerable households will be offered a
variety of engagement methods, including face-to-face events, Freephone number, Freepost
and online enrolment.
We will ensure that the estimated 18.7 % (7,785) of private sector households currently in fuel
poverty and those households on low income and/or receiving benefits are targeted as a
priority. Many of these households are on pre-payment meters and will be strongly
encouraged to participate in the switch. We estimate that 8000 vulnerable households will
participate in the scheme and hope that 1600 will switch supplier.
9
Local Authority Competition
4.2 Innovation in Design of Scheme
Describe how the proposed scheme will demonstrate innovation – in the design of
the scheme and in the ways of engaging with consumers. (max 200 words)
Through Exeter Together potential participants will be categorised, each with a specific
approach and messaging. These are:
Those in fuel poverty (specific)
Those interested in green energy (specific)
Those who wish to save money (broad)
We will use a combination of tried and tested media channels as well as social media,
supported by our own, dedicated Exeter Together website and digital platform.
Additional elements of project innovation comes from the recycling of a proportion of switch
fees to further support local residents through a dedicated fuel poverty fund and the
opportunity, as part of UK Together, to aggregate our local interested residents with those
from other projects across the country. This will not only allow us to secure the best value for
our residents for their switch, but will also help to establish relationships with other local
authorities that will help us share best practice for further phases. We have also agreed to
pilot a new switch model using feedback from Cornwall Together to try and ensure an
enhanced rate of sign ups and switches. This involves an upfront auction and allows us to
communicate potential savings upfront to residents; a new model for collective switching.
4.3 Strategic Fit
Describe how the proposed scheme will take a holistic approach to reducing
consumers’ energy bills. (max 200 words)
Fuel poverty can be tackled in three key ways; reducing energy charges, improvement of
domestic energy efficiency (through both the installation of energy efficiency measures and
behavioural change) and improved financial inclusion. Exeter Together is a collective
switching scheme, so its primary focus is to help households reduce their energy costs by
way of a cheaper deal on their gas and electricity bills through negotiation of a reduced tariff
with energy suppliers.
It is key to our aims that the opportunity to help reduce the energy bills of participants further
is not missed and that participating households are offered various options and support to
reduce their energy bills further.
Exeter Together will ensure that households are provided with options that help them to
both improve the energy efficiency of their home and improve their financial situation, to
ensure a holistic approach. This will include referrals to debt services and benefits advice,
energy efficiency advice, advice on payment options and initiatives such as the Warm
Homes Discount Scheme and assessment for grant funding through existing referral
mechanisms, such as CosyDevon.
10
Local Authority Competition
4.4 Evaluation
Describe how the scheme plans to capture and share learning. (max 200 words)
We will undertake a qualitative and quantitative evaluation covering both the project
operation and an evaluation of the primary delivery and strategic objectives; throughout the
scheme and at the end of the switch cycle. The initiative will capture learning via a shared
framework across the project team and other partners and will work alongside KPIs built into
the registration process, all of which will developed into a user-friendly guide.
Key indicators to be established in order to evaluate the success of the project in meeting its
objectives. These will include:
Percentage of the region’s population who participated
The advertising/marketing tone most successful for conversion
Number of participants on/offline
Number of prepayment customers
Percentage of households who did/did not switch and why
The average saving and the level of saving triggered a switch
Whether added value measures such as insulation measures were adopted
Which household types saved the most (helping to better target communications in future
phases)
A questionnaire will also be sent to all participants after the final milestone to capture further
information on referrals and general feedback will be encouraged via an email address. All
learning will be disseminated for the benefit of future project development.
11
Local Authority Competition
4.5 Transparency
Describe how the proposed scheme will communicate transparently to ensure
consumers are informed and understand it, and are provided with key pieces of
information – such as any expected savings to be made by switching – that are
accurate and not misleading. (max 200 words)
A style guide outlining key messages and wording will be agreed, based on local
information and industry research and best practice.UK Together specialise in
communication and media and will provide on-line support and resources during the
switching process, including information about sign-up numbers, practical details relating to
the campaign and information about any fee structures in place. For those without internet
access, a support team will be available by phone and at pre-arranged drop-in centres and
sign-up events. Once signed-up, customers will be regularly updated via emails or postal
correspondence. Partnership organisations will also play an important role in disseminating
the key messages and will receive appropriate training and support.
Customers with complex, technical queries will be directed to uSwitch via UK Together,
who are accredited by the Consumer Focus Code of Practice (meaning they adhere to all the
guidelines provided on the provision of advice to customers, that all advice is in plain English
or via a range of alternative communication methods where required).
All households will also receive a whole of market comparison in addition to their Exeter
Together tariff quote, to ensure complete transparency and that the resident is always
advised of the best deal.
12
Local Authority Competition
4.6 Project Costs
Provide brief details of the main activities that funding is requested for and the costs
of the project.
Deliverable
£000s
a.Orientation & training sessions for project delivery
REDACTED
b.Logo & branding design work, media templates to deliver
REDACTED
branding. Media & branding management
c.Website development and communications. Design of social
REDACTED
media assets, email communication templates. Integration with
3rd party switching provider
d.Development and delivery of UKTogether website with
REDACTED
functionality for blogs, knowledge share, etc.
e. Expertise input from `Cornwall Together (CT) to assist
REDACTED
strategic leadership of project. UK Together management of
local project manager and scheme
f. Use of review on Round 2 of CT – focus on innovation and
REDACTED
targeting vulnerable groups. Scheme evaluation and report.
g. Media and marketing campaign roll-out, including intensive
REDACTED
local radio campaign, Adshell advertising, advertising on council
vehicle, advertising on local buses.
REDACTED
REDACTED
Total cost of project during 2012-13
133.39
VAT (NB Clarification sought on whether appicable)
26.68
Total funding contribution required from DECC
160.07
13
Local Authority Competition
SECTION 5
Renewable Heat Survey - Optional
DECC is seeking information to inform our policies on support for renewable heating.
We have included this short survey to gauge interest levels amongst Local Authorities
in developing the local renewable heat market.
Do you have any interest in developing the local renewable heat supply?
YES/NO
If ‘yes’, please describe any plans you have, INCLUDING plans that have not been
developed due to lack of funding.
14
Local Authority Competition
If applicable, what benefits do you aim to achieve through developing local
renewable heating? (Please select all that apply)
Tackle fuel poverty
Support for technical
innovation
Reduce emissions from
To engage local people
heating
Support for local installers
To gain learning about
renewables
Other (please elaborate)
What funding might be required to deliver these plans?
(This will give us an indication of the scale of your ambition)
If applicable, have you encountered any difficulty securing funds?
15
Local Authority Competition
SECTION 6
To be completed by all applicants
6.1 Declaration
The project funding that is being applied for is to fund either a new project in relation to
which no funding has been allocated or to extend an existing project. The funding will not be
used to replace existing funding for a project.
We confirm that local and community organisations are involved in the design or delivery of
this proposal, where appropriate.
We confirm that the proposed use of the fund will comply with all relevant requirements of
EU law (e.g. relating to procurement and State Aid law).
Name
REDACTED
Title
Assistant Director Environment
Local Authority Exeter City Council
16
© Crown copyright 2011
Department of Energy & Climate Change
3 Whitehall Place
London SW1A 2AW
www.decc.gov.uk
URN 12D/398