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Circle seeks £1.4bn housing energy works provider

Circle Housing Group has begun the hunt for an energy provider partner to deliver gas and electricity works worth £1.4 billion for its entire 65,000-home affordable housing network.

The expected value of the energy supply is £50 million, with Energy Company Obligation works also estimated at £50m.

Work on the scheme could be worth £1bn if supply to domestic customers on preferential tariffs is permitted and Circle opts to include the opportunity in the contract.

The firm anticipates that other clients may want to use the contract, meaning that an additional £400m could be generated in work.

The partnership is aiming for low energy costs, significant cost savings and a lucrative level of ECO funding.

Circle says it will invest savings back into improving energy efficiency for its 65,000 households.

Initial work will involve supplying gas and electricity for office spaces and communal areas used by Circle’s sheltered housing tenants, saving the group an estimated £3m over 10 years.

Group head of energy and green strategy Helen Wilson said: “A significant number of people living in fuel poverty are currently residents of social housing providers.

“Therefore we are procuring an energy partner to work with us to offer a unique package that will help us invest in our homes and hopefully, in the future, secure reasonable energy prices for our customers.”

Circle expects to shortlist six applicants.

The partnership will include:

  • Provision of funding under ECO to carry out energy efficiency works at Circle’s residential properties
  • Supply of gas and electricity for common parts and non-residential buildings
  • Potential future supply of energy to Circle’s customers
  • Consultancy services to assist Circle’s customers


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