URL: https://democracy.adur-worthing.gov.uk/ieDecisionDetails.aspx?ID=1300

Decision Maker: Chief Executive

Outcome:

Is Key Decision?: Yes

Is Callable In?: Yes

Purpose:

Content: The Worthing Heat Network project is delivering low carbon heating to council and other buildings, with an implementation date of October 2025.  This will include Worthing Theatre buildings: Assembly Hall, Connaught Theatre, Pavilion Theatre and Museum.  The project will deliver key benefits, including £4.3m of grant and council funded enabling works in the buildings, including replacement windows, lighting, glazing and mechanical & electrical improvements, along with the key benefit of removing gas boilers and transitioning to low carbon heat (hot water) from renewable sources.   Whilst national policy is expected over the next few years to reduce the price of electricity and increase the price of gas as part of the national net zero 2050 strategy, at present low carbon heating is more expensive than gas.  The Worthing Heat Network scheme is guaranteed through various controls to provide the lowest cost low carbon heating option, but does not currently compete with gas fossil fuel.   Forward thinking organisations such the Worthing Council, Worthing Hospital, Worthing Theatres and South Downs Leisure are making the transition now.   As part of signing supply agreements relating to DforS&R/027/23-24, Worthing Theatres are expected to experience a significant increase to their annual energy bill and require transitional support as budgets are re-adjusted.  This is a result of the central government grant funding formula and the split between capital and revenue costs in the financial model.  This level of increase is not being experienced by other buildings and organisations in the network.   Worthing Theatres are strong supporters of the Heat Network, and the Council has been in discussions with WTM on a range of issues, including the transitional financial issue which has been under negotiation.   As part of the contract with Worthing Heat Network Limited (ESCO), a payment of £60k is being made to the Council for a period of 5 years, starting in 2024/25.  This budget is unallocated, although it will be required for heat network zone coordination support from 2027/28, in liaison with the new Sussex strategic authority which will have (funded) responsibility for zone coordination once it is established.   It has therefore been possible to propose that some of these funds be used to mitigate the impact of the revenue costs of connecting to the heat network for Worthing Theatres.  Agreement has been reached that a total of £110k will be provided to WTM by the Council over a two year period (2025-2027) to smooth the transition and allow WTM to adjust budgets to the higher cost of low carbon heating. To enable Worthing Theatres to be able to enter into a direct supply agreement with Worthing Heat Network Limited (ESCO) and therefore to ensure grant monies for enabling works can be drawn down from central government before the deadline. Negotiations have been on-going for some time with the financial issue as a key barrier to progress.  This solution does not put pressure on core council budgets, but alleviates the considerable financial shock of increased bills to WTM.

Date of Decision: November 13, 2025