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Green Deal

Green Deal . Energy Policy into Practice: slides for advisers. What’s the issue?. Consumers are currently put off installing energy efficiency by the upfront costs

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Green Deal

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  1. Green Deal Energy Policy into Practice: slides for advisers

  2. What’s the issue? • Consumers are currently put off installing energy efficiency by the upfront costs • The Government plans to introduce a Green Deal – a finance mechanism by which households can get a package of energy-efficiency measures at no upfront cost • This is then paid for by the residents of the home through a service charge on their energy bill • The charge is tied to the property – so you only pay if you’re benefitting from the measures, and not if you move out • The main criteria is that expected fuel bill savings will exceed repayment charge = ‘Golden Rule’. • But this cannot be guaranteed due to the impact of consumer behaviour on energy use

  3. Who says what? A strong Green Deal could warm many of the UK's draughty houses - but the cold reality is that it will do little to help millions of people shivering in fuel poverty or living in expensive-to-improve homes. Friends of the Earth The Green Deal has the potential to help consumers stop their houses from leaking heat, without being off-put by high upfront costs. But Government must make sure the rules are clear and are written in consumers’ favour.  Consumer Focus It's a triple win. It will create a new competitive market in energy efficiency worth at least £2.5bn a year. It will create over 70,000 skilled jobs. And it will save an estimated 9.4m tonnes of carbon. David Cameron 'The Green Deal must work for consumers, not just for energy suppliers and providers of "green" products. Independent advice, robust standards and strong enforcement are all vital to ensure that this happens. Which? The new Government is positioning itself as the ‘greenest government ever’ and has presented one of the most significant opportunities in recent years to reduce carbon emissions – the Green Deal. Existing Homes Alliance The Government's Green Deal risks failing to attract the businesses it needs to deliver its flagship energy efficiency scheme unless it provides greater clarity on how it will be financed and promoted. CBI Are they really suggesting 25-year financing is the sensible way to finance cavity wall insulation or a loft insulation top-up? National Energy Services

  4. The consumer experience Consumer Focus is examining the emerging plans, and is calling for: • Prioritise fuel poor households, both in terms of direct financial support through the subsidisation of measures and through targeted programmes • Do not allow disconnection of consumers for non-payment of non-energy services • Do not limit programmes by technologies, but drive them by success measures of carbon and cost savings for consumers • Join energy supply and energy services consumer protections from first principles, to avoid consumers falling through gaps, to provide coherent messaging on the low carbon future, and to avoid duplication of effort • Access for all • Voluntary initiatives are, unfortunately, unlikely to suffice. We want Government to develop a social marketing strategy to improve all housing, providing signals to the property market of what the future may hold.  We support regulation of the private rental sector as a first step to address the worst quality homes that need urgent improvement. • Support the development of a competitive market by ensuring all Green Deal providers can provide consumers the support they are entitled to under the energy company obligation • Consumers must have an easy-to-access and robust redress scheme, with a joined-up accreditation scheme across the full range of low carbon initiatives, including smart meters, Green Deal and renewables.

  5. Policy challenges? It is vital that consumer protections under the Green Deal reflect consumer needs. Evidence is therefore needed on: • Impact of disconnection on consumers • Poor quality energy advice or installation of energy efficiency measures • What problems are caused for consumers? • Do current protections and redress schemes help or heed them?

  6. Want more information? The Department of Energy and Climate Change is responsible for the development of the Green Deal. Updates are available from http://www.decc.gov.uk/en/content/cms/what_we_do/consumers/green_deal/green_deal.aspx

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