Carillion has announced it has been named as the preferred bidder for the Birmingham Energy Savers (BES) scheme.

This contract is a major milestone in establishing the Green Deal programme and in Birmingham's ambition to drive the low carbon economy and create green jobs.

The eight-year BES contract is estimated to be initially worth up to £600 million, but has the potential to be extended to the wider West Midlands area under a framework agreement worth up to £1.5 billion over eight years.

Under the BES scheme, Carillion will work with Birmingham City Council as its exclusive delivery partner to improve the energy and carbon efficiency of up to 60,000 households across the City, together with schools and other non-domestic Council properties.

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The scheme will give households affordable ways of improving their properties by fitting energy efficiency measures, such as insulation and new boilers under the UK Government's Green Deal.

The Green Deal allows the cost of installing energy efficiency measures to be recovered in installments through energy bills at no cost to home owners, where savings on energy bills equal or exceed the cost of improvement work.

Homes where savings are insufficient to cover the cost of improvements may be eligible for improvements under the Energy Company Obligation.

As part of the Birmingham Energy Savers scheme, Carillion will also launch a programme to install its innovative EcoPod heating system to tackle the heating and hot water challenges of tower blocks across the City to help reduce fuel poverty.

In partnership with Birmingham City Council, Carillion will also have the opportunity to extend the provision of energy efficiency services to up to 35 other councils and public sector organisations across the wider West Midlands area who were party to the original procurement notice and who can therefore take advantage of these services under a framework agreement, without the need for further competitive tenders.

(CD/GK)