Decision details

Transfer of Heat Network assets from the Council to Bristol Heat Networks Limited

Decision Maker: Cabinet

Decision status: Recommendations Approved

Is Key decision?: Yes

Is subject to call in?: Yes


Seek authorisation of the transfer of all heat network assets currently owned by the Council to its wholly owned company, Bristol Heat Networks Limited and matters in connection with the transfer


That Cabinet:

1. Approved the transfer of the Heat Network Assets (being the heat network installed by the Council as shown in the map at figure 1 in appendix A including related heat and power generation facilities and building connections as detailed in Appendix A and relevant associated contracts) from the Council to Bristol Heat Network Ltd (“BHNL”).

2. Delegated authority to Executive Director of Growth & Regeneration, in consultation with Cabinet Member for Climate, Ecology, Waste and Energy, Director of Legal and Democratic Services and Director of Finance:

a. to finalise the process and terms of the agreements for the transfer of the Heat Network Assets and the ongoing construction and delivery of the assets up to the point of the proposed transfer of BHNL to Vattenfall Heat UK Ltd;

b. finalise the terms of an agreement between the council and BHNL for the provision of services by the Council to BHNL in relation to the Heat Network Assets; and

c. to take all steps required to approve the terms of the transfer of Heat Network Assets set out above and to implement and enter into all such documents to give effect to the transfer of the assets set out above.

d. Entered into heat supply contracts (including any individual contracts over £500k) with BHNL under which BHNL will provide a bulk supply of low carbon heat to the social housing blocks on the Redcliffe Estate as outlined in this report.

3. Delegated authority to the Director of Finance (s151 Officer) in consultation with the Cabinet Member for Finance, Governance and Performance to:

a. approve an allocation of up to £11.3m to fund the consideration payable by BHNL for the Heat Network Assets; and

b. agree the terms of the provision of such finance and to enter into any documents required to fund the transaction.

4. Approved for the purposes of reserved matter consent required to be given by the Council as shareholder pursuant to the articles of association of BHNL, the acquisition by BHNL of the Heat Network Assets and the additional funding required to finance such acquisition.

5. Noted the previous approval of the transfer of Old Market and Redcliffe heat network assets to BHNL by Cabinet in September 2020, to take effect as part of the above asset transfer.

6. Delegated authority to the Head of Property Services in consultation with the Executive Director Growth and Regeneration to negotiate, agree and complete the grant of leases to Bristol Heat Network Ltd as set out in point 5 of the evidence base to this report

7. Noted the intention to bring a further report back to Cabinet to seek approval to enter into the City Leap contracts and the proposed transfer of BHNL to Vattenfall Heat UK Ltd.





Report author: David White

Publication date: 12/07/2022

Date of decision: 12/07/2022

Decided at meeting: 12/07/2022 - Cabinet

Effective from: 20/07/2022

Accompanying Documents: