A large legal settlement is being toasted by Peterborough City Council after it clawed back money over the delayed installation of solar panels.
The council was awarded the money from Enterprise Managed Services Ltd (EMS) which put the panels on the roof of the former Freemans building in Ivatt Way.
The council also received damages after two fires occurred at the building.
The award was made by a disputes adjudication board and the figures have been outlined in a report to the council’s audit committee.
EMS was penalised for not designing and installing a 1.5MW solar energy plant by July 31 2011.
This would have enabled the council to benefit from the government’s ‘feed-in tariff’ scheme and receive more income from power which was generated.
We’re pleased with the adjudicator’s decision. It confirms we were right to pursue Enterprise.Council spokeswoman
The council commenced a claim against EMS for £1.322 million, it said was due under contract for EMS’ failure to meet the July deadline.
This was not agreed but the council succeeded with a second claim, which saw the adjudicator award it £827,000 due to loss of earnings.
The council was also awarded £135,000 in relation to fire damages and professional/legal fees.
EMS was successful with a counter-claim of £658,000 over unpaid work for carrying out the installations. The installation works were completed in late 2011.
A council spokeswoman said: “We’re pleased with the adjudicator’s decision. It confirms we were right to pursue Enterprise for the money we maintained was owed to us.
“The compensation reimburses us so that we will receive the full income we expected.
“The money we have been asked to pay Enterprise was money we knew we owed for the installation of the solar panels and was therefore always in our budget.
“We will now be able to register the scheme with Ofgem so that we can receive an income for the electricity generated by the solar panels.”
The fire damages refer to two blazes at the site before January 2013.
The fires, which cost £15,648 in damages, were described as small by the council.
The council added that the fires resulted from an electrical fault and that certain parts needed to be replaced.
A spokesperson for Enterprise Managed Services said: “We acknowledge the adjudicator’s decision, however due to legal considerations we are unable to comment further.”