Government announces latest Green Deal policies

The much awaited secondary legislation in support of the UK’s flagship Green Deal energy efficiency scheme has been revealed by the UK Government.

More than 600 responses to the government’s consultation on the Green Deal and accompanying Energy Company Obligation (ECO) initiative have been considered. Subsequently, full details of the final policy were presented to parliament yesterday by Energy and Climate Change Secretary, Ed Davey.

It is hoped that the new policies will boost the burgeoning low carbon economy by supporting up to 60,000 jobs in the insulation sector alone over the next three years, up from around 26,000 today.

The Department of Energy and Climate Change (DECC) aims to have both the Green Deal and ECO rules cemented by October this year, which will include, in legislation to be laid later this week, ensured support worth around £1.3 billion a year to deliver energy efficiency and heating measures across the UK to help tackle fuel poverty and climate change.

“The Green Deal will play a huge role in improving the energy efficiency of our homes and businesses, with ECO making sure that the most vulnerable homes benefit too,” said Davey when announcing the news.

“We have listened very carefully to what industry, consumer groups, and other organisations have told us. Broad support for a managed, tested and careful introduction of the Green Deal fits exactly with our objective to provide an excellent customer experience from day one and a market where a range of new players can readily participate,” added Davey.

“I am determined to make sure that, in addition to creating huge opportunities for Green Deal providers and businesses along with thousands of new jobs, this new market in energy efficiency will deliver the very best deal for consumers.”

A major concern that has been highlighted within the Green Deal initiative is the lack of consumer protection and the burden the policy would place on businesses.

The government claims that the reforms highlighted in the report yesterday go a long way to displacing these fears by placing restrictions on ‘cold calling’, and implementing legislation that requires Green Deal Assessors to declare any commission they might be receiving for carrying out an assessment and any ties to Green Deal Providers.

The reforms also include changes to the warranties proposal, which will ease requirements on businesses to hold warranties for the length of a Green Deal Plan, while also maintaining robust minimum standards of protection for consumers.

Changes have also been made to the ECO to include allow more hard-to-treat cavity walls to qualify for support and to provide specific support for low income and rural areas. The DECC claim that these modifications will enable the insulation industry, which has been supported by current schemes, to take advantage of the new market opportunities created by the Green Deal and ECO. An estimated technical potential of around 2.8 million hard to treat cavity wall properties will now be eligible under the ECO.

The Green Deal framework will consist of assessors, installers and Green Deal Providers, ready to start work in October. From August this year accredited certification bodies will be able to submit applications to register with the Green Deal Registration and Oversight Body, and will then be able to register assessors and installers as ‘Green Deal Approved’. Potential Green Deal Providers will also be able to apply for approval.

Yesterday’s announcement also includes a final impact assessment and associated research, and confirms the appointment of Ofgem to be the ECO Administrator. The Government will shortly announce the contract awards for the Green Deal Registration and Oversight Body and the Green Deal Ombudsman and Investigation Service function.

 

Image 01: Danny Robinson | Wikimedia Commons

Image 02: Paul Albertella | Flickr

Image 03: Paul Albertella | Flickr

Image 04: Paul Albertella | Flickr