133 Fenland residents who signed up to insulation ‘green deal’ warned little hope of getting back deposits as firm fails

15:52 31 October 2015

Climate Energy Ltd

Climate Energy Ltd

Archant

Fenland residents who paid deposits – there are 133 of them - to have solid wall insulation under a Cambridgeshire-wide ‘green deal’ initiative look likely to lose their deposits.

Background to firm’s failure

Climate Energy was the second ‘green deal’ company to enter administration within 24 hours.

One of the reasons they cited for their fall was to accuse the government of stopping support for the sector.

Administrators FTI Consulting said “The withdrawal of public subsidies is a contributory factor to the failure of the business.

“However, the business faced other challenges and attempts to diversify the business were also ultimately unsuccessful.”

A statement on Climate Energy’s website says it cannot fulfil any pre existing contracts, all staff has been laid off, and they are in no position to continue to trade.

A statement on the county council website says: “It is possible, but no means certain that deposits can be recovered from the administrator.

“We regret that it has now become clear that Climate Energy Limited is not, and will not be in a position to complete contracts to carry out insulation work.”

A report to Fenland Council says that on October 7, Climate Energy, the procured partner to administer the Action on Energy scheme, entered into administration.

The company was working across Cambridgeshire / Suffolk / Bristol and Solent DC. The report to Fenland Council says: “All of these local authorities are in receipt of Green Deal Communities Fund. To date, in Cambridgeshire, Climate Energy Limited has fully completed 209 installations.

“There are 582 jobs where deposits have been paid and work has not started, and a further 32 jobs which have been passed to subcontractors and work is part in progress. “ For Fenland this equates to 15 installations fully completed, 133 jobs where deposits have been paid and work has not started, and no jobs where work is part in progress.”

The report says that officers from all Cambridgeshire councils who had signed up to the scheme have been working to resolve issues for customers. Overall management of the scheme is led by Cambridge City Council.

“There are six other companies who a registered to complete green deal projects and it is anticipated if customers wish to continue they will use these registered providers instead of Climate Energy,” says the Fenland report.

“Letters are being sent to all customers advising them of their rights and next steps to complete the work on their properties.”

The county council says “the most straight forward way for you to get your work complete is to continue with that installer by entering into a new agreement with them to continue the work”.

Those who applied for the scheme were issued with a voucher for a sum of up to £6,000 for a Green Deal Communities grant towards insulation. The county council says this voucher can be transferred and made payable to an alternative company so long as they are an accredited Green Deal Installer company and registered with the grant administrators, Cambridge City Council.

But they warn that “should you request additional work to be carried out or changes that require an increase in costs we are unable to increase your voucher value. Any additional costs will need to be agreed with the company and funded entirely by the customer.”

* In Fenland inquiries from affected households are being dealt with by Ian Bradley on 01354 654321 (Mon-Wed) and Isobel Edginton (Thur, Fri).

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