Energetik uses leftover heat from the Edmonton incinerator to warm people’s homes but there is growing criticism over its cost, reports Grace Howarth, Local Democracy Reporter

Energetik pipes are currently being laid between Edmonton and Ponders End — Energetik pipes are being laid between Edmonton and Ponders End

Enfield Council’s deputy leader defended the local authority’s district heat network as a report confirmed total funding for the project is set to hit £114million.

Tim Leaver described Energetik as a “profitable” business with a “strong long-term outlook” at a cabinet meeting on Wednesday (15th).

Although the council-owned firm made a £2.6million operating profit for 2024/25, this was reliant on one-off connection fees being received. Excluding connection fees, a cabinet report warned the business would not make a surplus until 2038.

The report on the company’s finances stated the £114m in total funding secured comprised “a mixture of loans and grants” from different sources.

In June, the council agreed a “revised business plan” as part of a move towards “connections to public buildings and similar anchor sites to diversify income and reduce reliance on residential development timelines”.

The loans and grants are held by Enfield Council and released to Energetik through drawdowns, with £66.8m transferred to the company so far and another £47m still to come.

Among the grants is £18.6m from the government to connect Energetik to eight schools, where it will “replace end-of-life gas boilers in schools”.

A concern highlighted by the report was the company’s reliance on connection fee income, with these “large one-off payments” often delayed by extended construction timelines, such as those experienced at Meridian Water, the council’s flagship housing scheme in Edmonton.

It added that “efforts are underway to attract an equity partner to inject additional capital into the business”.

Trying to reassure the cabinet of Energetik’s benefits for local residents, Cllr Leaver said: “The first benefit is low-cost heating, the second benefit is it’s low carbon, so people are making a significant contribution to lowering the borough’s carbon footprint and, in the future, where we’re going for housing and heating, we have a responsibility to not only benefit individual residents from a financial point of view but the borough as well.”

Cllr Leaver continued: “We’ve got a climate action plan and Enegetik is key to that.

“It allows us to reduce carbon emission as we move away from fossil fuels and supports developments we’ve got in places like Meridian Water. It’s helping us meet current commitments and helping us meet future ones

No news is bad news

Independent news outlets like ours – reporting for the community without rich backers – are under threat of closure, turning British towns into news deserts.

The audiences they serve know less, understand less, and can do less.

If our coverage has helped you understand our community a little bit better, please consider supporting us with a monthly, yearly or one-off donation.

Choose the news. Don’t lose the news.

Monthly direct debit

Annual direct debit

£5 per month supporters get a digital copy of each month’s paper before anyone else, £10 per month supporters get a digital copy of each month’s paper before anyone else and a print copy posted to them each month. £50 annual supporters get a digital copy of each month's paper before anyone else.