Capita take over Corgi

[Aqua Mechanica]

The Health and Safety Executive (HSE) today announced Capita as its preferred bidder to provide a new gas installer registration scheme.

The new scheme starts on April 1, 2009 and will replace the existing scheme operated by CORGI.

Having rejected CORGI's bid in favour of Capita's, the HSE will hold detailed discussions with the business process outsourcing company during the next few months to firm up a contractual agreement, which is scheduled to be signed this autumn.

During 2006 a HSE review of the domestic gas safety regime and discussions with stakeholders in and outside the industry identified a case for change. Research by the University College London, found that of those interviewed in a survey of 597 homes, 45% had little understanding of the risks associated with gas and carbon monoxide.

The HSE admitted that criticisms by stakeholders of the existing gas installer registration scheme run by CORGI, "had some foundation".

A spokesman for the HSE said "Even though the official statistics were showing an improving picture, it was felt that more should be done to raise public awareness of gas and CO risks".

The HSE issued 'Invitation to tender' documents to short-listed companies in January 2008 and CORGI and Capita emerged as the two strongest bidders.

A spokesman for the HSE said "What made Capita the preferred bidder was Capita's ideas for promoting gas safety and delivering the new brand. They introduced certain new ideas to the scheme".

Capita will have incentives to continuously improve gas safety and services to gas consumers and installers. But there will also be financial implications should they not meet the agreed key performance indicators.

One KPI sets out targets for establishing a new gas safety brand with gas consumers during the first two and half years of the new scheme. Another KPI focuses on reducing "the proportion of justified consumer complaints about gas installation work where safety defects are confirmed in inspection".

CORGI was appointed to run the scheme in 1991. The Capita contract is valued at around £14m annually. Around 250 CORGI employees are expected to transfer to the new scheme.

CORGI's chief executive Mike Thompson said " CORGI is naturally disappointed with the decision but will now work closely with the HSE and Capita to ensure a smooth transition process between scheme providers in the interests of gas safety.

“Beyond April 2009, the CORGI Group of companies will continue to provide a range of commercial services under the CORGI brand to financially support the CORGI Trust.

“Our focus now is to work with the HSE and Capita to maintain the profile of gas safety for installers and consumers, and to also provide guidance and support to the 300 or so current CORGI employees”.