The Dutch municipality of Utrecht has high ambitions for the district of Overvecht. An extensive social project is under way and at the same time, the district is being prepared for 'natural gas-free in 2030'. Part of the district only uses gas for cooking; heating is by means of a heat pump. These homes are seen as 'low-hanging fruit' for the natural gas-free objective. A way is being sought to give all 4,500 residents - 95% tenants, 5% private tenants and owners - an induction hob, without it costing them anything. The project played out in 2020.
The ambition of the municipality was already supported by the three housing corporations in the district and the grid manager Stedin. They formed the core team. The approach focused on a number of tracks: 1) supply (sufficient choice and no hassle), 2) practical test (will enough people say 'yes'?), 3) financing the supply (it should not cost the resident more than it does now).
During the Corona lockdown, ten parties were approached to come up with an offer in groups. The parties were installers who knew the housing corporations in the neighbourhood, local parties who knew the residents, marketing communication parties and white goods suppliers.
Part of the selection of the offering parties were interviews with residents (thanks to the lockdown digital). Afterwards, the offer would also be offered free of charge in a pilot to a limited number of residents to test whether they were happy with the offer (both the induction hob and the installation and disconnection of natural gas).
Financing was a bridging issue: residents would pay €10 less per month for a gas connection, which was to pay for the switch. But the question was: who would finance and how would we organise the repayment?
The intention was that the requested parties would develop different offers. However, one large consortium emerged. The installers decided to join forces and chose a communication agency, a local party and a white goods supplier to complete the offer. In doing so, they acquired (for the duration of the pilot) the exclusive right to make an offer and thus determined the direction of the project to a great extent. The estimation of the installers was increasing. The electricity supply in the houses was often old-fashioned and not ready for electric cooking. Work also had to be done that was not just related to electric cooking. These costs had not been estimated for this project and could not be met from the residents' savings. As a result, the housing corporations discovered that they thought this project was premature. They preferred to combine the work with renovations planned for later. It was thus decided that the low-hanging fruit was not as low as it should be and the focus was put back on the overarching project.
A search for a way to give all 4,500 residents of the Overvecht district of Utrecht (The Netherlands)- 95% tenants, 5% private tenants and owners - an induction hob, without it costing them anything. This seemed to be (unjustifiably) low-hanging fruit for the 'natural gas-free in 2030' mission.
At many times, old routines played an obstructive role in the project. The corporations estimated that residents were not waiting for work to be carried out in their homes several times, as they had learned in previous projects. They preferred to postpone the project in order to combine it with work that would take place several years later. However, on a tour of the neighbourhood, almost all residents were happy with the offer. The work was not mentioned as an obstacle. Nevertheless, this argument kept being mentioned by various people from the different corporations. Even the installers stepped into an old groove when they were asked to estimate the cost of the intervention. Each new estimate was higher than the previous one because they kept estimating new possible setbacks and assumed that these risks would end up in their pockets. The corporations' maintenance people also shot into their old reflex; given the estimates, they decided it would be cheaper to include the cooking gas replacement in already planned maintenance projects than in a programmatic approach over the entire district. Neither party was able to open a discussion on their own about the common interest.
At many times, old routines played an obstructive role in the project. The corporations estimated that residents were not waiting for work to be carried out in their homes several times, as they had learned in previous projects. They preferred to postpone the project in order to combine it with work that would take place several years later. However, on a tour of the neighbourhood, almost all residents were happy with the offer. The work was not mentioned as an obstacle. Nevertheless, this argument kept being mentioned by various people from the different corporations. Even the installers stepped into an old groove when they were asked to estimate the cost of the intervention. Each new estimate was higher than the previous one because they kept estimating new possible setbacks and assumed that these risks would end up in their pockets. The corporations' maintenance people also shot into their old reflex; given the estimates, they decided it would be cheaper to include the cooking gas replacement in already planned maintenance projects than in a programmatic approach over the entire district. Neither party was able to open a discussion on their own about the common interest.
The business case could have been conclusive, if the legal possibilities had been appropriate. However, they were not designed for this situation. The amount needed for the switch to induction was too low to be financed from the sustainability loan that the municipality offers for sustainable investments. The heat fund, which was also intended for people who could not borrow elsewhere - many of the residents in this neighbourhood - had not included gas-free cooking in its objectives. Changing this would take several months. National rules did allow the grid manager to charge €10 a month for a gas connection, but there was no way residents could voluntarily agree to use this €10 for something else. Also, the savings made by the network operator for not replacing the gas pipes could not be used to pay for the switch. And without all these possibilities, financiers estimate the risk of repayment too high to achieve reasonable financing costs. In short, no matter how sympathetic the idea was, no financier could pre-finance the switch at an acceptable cost.
Redactie IvbM
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