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DECC presentation on the Green Deal consultationDecember 2011

The DECC Green Deal and Energy Company Obligation Consultation, regarding policies to be implemented in secondary legislation and under the energy licencing framework, is open until 18th January 2012.

Background of the Green Deal and the consultation

Co-Construct, a construction industry group including BSRIA, recently held a meeting with Tracy Vegro, Director of the Green Deal at DECC (Department of Energy & Climate Change) regarding the Green Deal. Following her presentation, a Q&A session raised a number of issues.

The slides used in the presentation were divided into four parts:

  1. Introducing the Green Deal 
  2. ECO and the Green Deal
  3. Stimulating Demand
  4. Consultation & next steps

Tracy stressed the importance of the green deal's golden rule: Repayments must never exceed savings.

The vision of the Green Deal (GD) is a process resulting in less carbon emitted, fewer families in fuel poverty and improved homes. She talked through the four key steps of how it would work; Advice, finance, installation and repayments.

The replacement for Carbon Emissions Reduction Target (CERT) and Community Energy Saving Programme (CESP) now called the Energy Company Obligation (ECO) was presented and how it would work with the Green Deal in partnership. This should significantly increase private sector spending and will deliver measures for hard to treat housing and help poorer households; it was expected that up to £2m will be spent on solid wall insulation retrofits.

Barriers to delivery were discussed i.e. unengaged householders being uncertain of the benefits and discounts of future savings, concerns about quality of work and hassle-factor, and housing providers needing to seek consent from sitting tenants (energy bill payers). She indicated that Government funding of £200m will be made available to boost early take up.

The consultation now in progress has three main purposes; to explain the context for the development of GD and ECO, set out their proposals for GD and ECO and thirdly, consult on key issues around their proposals on the operations / delivery and monitoring of the GD and ECO.

There were a number of question put to Tracy:

Q: Is the GD for gas and electric?
A: The customer can make improvements to their gas or oil fired boiler and generators; however the savings they make will be added to their electricity bills. This was done because all houses have electricity, yet not all have gas or oil.

Q: Is GD just domestic?
A: No, it includes small businesses but maybe not suitable for manufacturers.

Q: How will trades be accredited for GD work?
A: UKAS accredited tradesmen only with appropriate guarantees.

Q: Do you envisage house holder defaults?
A: Energy has lower defaults and the payment is through savings on energy bills.

Q: Will there be a post installation policing process for complaints?
A: There are strong powers within the bill if we have to use them we will.

The DECC Green Deal and Energy Company Obligation Consultation is open until 18th January 2012.