Key Questions

Q. Are you happy for a third party to own the plant assets on your Development whereby they may be able to 'ransom' your residents?

Consider

• failure to provide service / insolvency – the asset is linked to the energy supplier, what happens next?
• the value of the buildings with a contingent link to the energy plant which is not actually owned by the freeholder
• having paid towards the asset do you now hand its value over to a third party?
  

Contracting

Q. Do you want to hand the construction risk of a significant aspect of your development to a third party who in all likelihood is subcontracting to the lowest price?

Consider

• the consequences of another construction contract running alongside your own with potentially different program objectives, health and safety, and coordination.
• Infrastructure installation will be run through your construction site by contractors not in your control.

Freedom of Choice

Q. Are you prepared to force your purchasers/tenants into a 20-35 year contract for electricity supply from a single supplier?

Consider

• the impact on sales and lettings

Previous Experience

Q. Are you happy with the flexibility of mainstream Utility Company's contracts and their willingness to accommodate your aspirations and requirements?

Consider

• Your historic experiences of mainstream utility contracts.
  

Revenue Sharing

Q. Would you like the opportunity of entering a revenue share arrangement with the ESCo so you can take some long term benefit?

Legislation

Q. In light of the recent European Court of Justice ruling, relating to the Citiworks case, are you happy to enter in to an ESCo arrangement, where the ESCo’s business model may be in contravention of EU law?

Consider

• Could electricity supply monopolies created through Private Wire schemes and long term consumer lock-in put the development and its energy supply at risk?