Enfield Council is considering external investment for its energy company, Energetik, as it reaches a critical stage in its development and long-term financial sustainability. Challenges for Energetik have included slower-than-expected returns from housing development connections and the need for procurement flexibility to deliver cost-efficient outcomes.
The Overview & Scrutiny Committee met on 8 September 2025 to discuss the potential move, aimed at minimising the financial burden on the council. Hermetica Black, Partner Selection Manager, has been appointed to advise Enfield Council on the process.
Energetik has received substantial investment to develop its low-carbon heat network infrastructure, including £81 million in government-backed loans and grants, £10 million in Public Works Loan Board (PWLB) loans, and a projected £99 million in connection fees over the course of the business plan. As of 31 March 2025, Enfield Council had on lent £51.7m to Energetik. Energetik and Enfield had also secured £18.6m in grant from the Public Sector Decarbonisation Scheme to connect eight schools.
However, the project has faced challenges, including slower-than-expected returns from housing development connections and the need for procurement flexibility to deliver cost-efficient outcomes. A paper (KD5865) went to the Cabinet held on 11 June 2025 which presented options to the council on how best to support the business to achieve its business plan objectives.
The committee noted several key risks associated with Energetik, including investment risk, subsidy control compliance, revenue uncertainty, and technology risk. The Public reports pack provided an update on Energetik, including information on how much money has been invested, a review of the business plan and operating model, key performance indicators (KPIs), and value for money for the taxpayer.
