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19
Mar
Harrogate heating network contract to be re-tendered after liquidation
Town councillors have voted to re-tender a contract for a study into a Harrogate heating network after the company tasked with the job fell into liquidation.
The network aims to deliver cheaper energy to Harrogate, with the more deprived areas of Jennyfields, Bilton and Fairfax first to benefit.
Harrogate Town Council appointed Sheffield-based Tomson Consulting Ltd to carry out a feasibility study at a cost of £34,943 in January.
The council secured a grant from the government’s Great British Energy Community Fund to cover the costs of the plans, which would connect homes to a central heating source via insulated pipes underground.
However, Iona Taylor, clerk at the council, revealed in a report that Tomson Consulting was being placed into liquidation following “trading and cashflow difficulties”.
A map showing the three priority areas for the scheme.
At an extraordinary full council meeting at Harrogate’s Civic Centre last night (March 18), town councillors were told that the council first became aware of the liquidation on March 6.
Councillors voted to terminate the contract with Tomson Consulting — which had received a single payment of £3,079 plus VAT for its initial work.
Cllr Chris Aldred, the Liberal Democrat Mayor of Harrogate, said a proposal had been put forward to re-tender the contract.
He added that the council had until December 31, 2026, to complete the feasibility study and had now "lost a month" to progress the work.
Cllr Aldred said:
Speed is a little bit of the essence. The funder, which is GB Community Energy, are very, very clear that we can change the milestones and we can hurry things along a bit.
But they are very clear that we have to produce the feasibility study by December 31. So, we are going to have to change the tender details to make it go quicker. We have already lost probably a month.
Phoenix company rejected
Councillors voted to open a fresh tender process for the feasibility study contract.
It was also agreed that the council carry out a review of the heat network project to date “to ensure that lessons are learned and that future risk is minimised”.
Town councillors did not pursue another option to appoint FFT Consulting — a “phoenix company” from the director of Tomson Consulting — to continue the work
In her report to council, Ms Taylor said the appointment of the new firm would “cause the least delays”.
However, she added that councillors “should be cognisant of any adverse public perception arising from entering a contract with a company which is the result of a phoenixing arrangement”.
Although councillors voted to open a fresh tender process, Cllr Aldred said the council would not be able to prevent the phoenix company from bidding for the new contract.
Another option to approach other companies which came forward during the contract tender process last year was also not pursued.
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